Yesterday’s stock market crash pushed the ADA below $ 1.5. As of this writing, ADA is facing a crucial support level at $ 1.3. In the event that this level goes down, ADA is likely to retest $ 1.
Key Support levels: $1.3, $1
Key Resistance level: $1.5, $1.7
Cardano’s native token has seen a downward correction since early September, after hitting the current all-time high at $ 3.09, according to CoinGecko.
Unfortunately for ADA’s holders, the most recent market crash drove it below the key support level at $1.5 down to $1.3. Price is currently struggling to maintain the critical support, and ADA may continue to fall to $1 if the current level isn’t able to hold.
ADA has been in a steep and aggressive downtrend that began months before this stock market crash. Therefore, bears control the market. In order to start seeing a bullish reversal, price needs to recover to the $ 1.5 level, which turned into resistance after the weekend crash.
Technical Indicators
Trading Volume: Increasing volume as price declines is a bearish sign. Best to stay away from ADA until there are signs of a possible reversal, followed by a massive amount of volume.
RSI: Daily RSI has hovered just above 30 points or above oversold territory since the correction began in September. This puts ADA in a clear downtrend. However, this latest price drop did not lower the RSI, indicating that the bears could run out. In addition, the oversold area is nearby.
MACD: The MACD on the daily timeframe is bearish with expanding moving averages and a negative histogram. This has to reverse quickly; otherwise, the $1.3 support level may be under significant pressure.
Bias
Cardano’s current bias (ADA) is bearish. Since the launch of smart contracts on Cardano, the trend has been bearish for more than three months, and this latest market crash has even made it more difficult for ADA to find a way out of this downtrend.
Short-Term Prediction for ADA Price
If ADA cannot stop the downtrend at $1.3, the price will most likely drop to retest the next significant support around $1. The bears dominate the market as of now.
Given the current market conditions, it is difficult to see how ADA can reverse the trend at this time. Ideally, ADA can consolidate here and attempt a breakthrough later in December.
