Cardano (ADA) Consolidating: Will The Price Break Above $0.5238?

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  • During the weekly trading session, ADA crypto dropped over 2%.
  • Moving averages suggest a strong bearish signal in the current phase.
  • The 24-hour trading volume of Cardano has reached over $177 Million.

Founded in 2017, Cardano (ADA) is an open-source project and one of the biggest blockchains that has successfully used a proof-of-stake consensus mechanism. It aims to redistribute power from unaccountable structures to the margins of individuals. 

Over the past few months, ADA has faced strong bearish pressure, resulting in a massive decline. This made investors a bit cautious in the current sessions.

Who Will Dominate the Cardano Price, Bears Or Bulls?

On January 26, 2024, the ADA crypto price started a bullish rally from the $0.4736 decisional point of interest (POI). The price gave a breakout of a bullish flag pattern and surged over 70% to the $0.8113 resistance. This showed strong bullish sentiments in crypto during that time.

However, the bulls have lost control over the price at the $0.5635 key level, which instantly shifted bearish sentiments in the market. The price made a change of character and entered the consolidation phase, in which the price is currently struggling. The buyers and sellers are showing equal dominance in the current phase.

Price, Volume, And Social Dominance Analysis

The social rise in tweets had little influence on the Cardano crypto price. On the other hand, the trading volume has been facing consistent declines since May 28, 2024. It shows the decreasing interest of traders in the current trading sessions. The average social dominance covers 1.5% of the entire world.

Technical Analysis of the Cardano (ADA/USD)

Cardano
Source: ADA/USD Daily Chart by TradingView

The short-term outlook lies below the key exponential moving averages on the bearish side. Currently, the 50-day and 200-day EMAs had a death crossover, reflecting increasing bearish sentiments in the price.

ADA has broken below $0.5635, a key support level. It ended up dropping 28% to the $0.3992 level and entered the consolidation phase with $0.5238 as the upper level. The price was moving between these levels at press time. 

Regarding the technicals, the price reflects a bearish view in the current session. Moreover, a bullish move can be expected above the $0.5238 immediate level.

Furthermore, the relative strength index (RSI) is moving in correlation with spot price, showing weak momentum. This indicates the RSI has a neutral perspective on the price. At present, the RSI is moving at 43.69 below the SMA line.

Summary

Cardano crypto has been showing strong bearish momentum since March 14, 2024. The cryptocurrency recorded an almost 50% adverse rally and entered the consolidation phase, where the price is currently struggling. 

The price reflects a bearish view in the current session per the technicals. Conversely, a bullish move can be expected above the $0.5238 immediate level.

Technical Levels

The immediate resistance for ADA was $0.5238 at the time of writing, while the $0.3992 level was the next support. The major price changes depend on these mentioned levels.

Disclaimer

The views and opinions stated by the author or any people named in this article are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.

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