Cardano (ADA) has been navigating through a period of uncertain market sentiment, with its price recently facing increased selling pressure as it approached the $0.39 resistance level.
In the past 24 hours, ADA has declined by nearly 5%, trading at $0.37 at the time of writing. Despite slightly improving the broader crypto market sentiment, Cardano has struggled to maintain momentum.
After rebounding from the $0.31 support level, ADA managed to climb above the near-term exponential moving averages (EMAs), specifically the 20-day EMA ($0.3629) and the 50-day EMA ($0.3752). However, the recent price reversal pulled ADA back below the 50-day EMA, indicating continued bearish pressure.
The 200-day EMA, currently at $0.4711, serves as a distant resistance level, further emphasizing the bearish dominance over the longer term.
The Moving Average Convergence Divergence (MACD) indicator showed a slight bullish edge, with the MACD line slightly above the signal line, finally entering positive territory after several weeks. This suggests that the immediate selling momentum may be easing, but ADA still faces significant resistance.
For the bulls to regain control, ADA must find support near the 20-day EMA and make another attempt to break through the $0.39 resistance level. A successful close above this resistance could pave the way for a recovery towards the 200-day EMA near the $0.47 level.
The Relative Strength Index (RSI) hovered near equilibrium, indicating a balance between buying and selling pressure. However, if the RSI dips below the 50 mark, ADA could face a delayed recovery, exposing it to further declines.
Key levels to watch include the immediate support at $0.375. If ADA can maintain this level, it may attempt to break above the $0.39 resistance. Conversely, a break below the $0.3629 level could lead to a retest of the $0.3454 support.
In the last 24 hours, trading volume decreased by 3.52% to $292.17 million, while open interest increased by 0.96% to $192.97 million. This indicates that traders remain engaged in the market, awaiting clearer signals for the next move.
The long/short ratio for the last 24 hours stood at 0.8372, reflecting a bearish sentiment. However, on Binance, the ADA/USDT long/short ratio was notably bullish at 2.4626, suggesting that some traders remain optimistic about a potential recovery.
In summary, Cardano [ADA] is at a critical juncture, with key support and resistance levels likely to determine its near-term price direction. Traders should closely monitor these levels and market sentiment indicators for potential trading opportunities.
