Cardano facing serious resistance that might launch downward reversal
After a 16-day rally in the market, Cardano is facing the most serious resistance level on the chart, which could become a reversal point for the Ethereum rival, especially with the lack of support.
Despite breaking the 50-day moving average that has been acting like a guideline for Cardano for a long period of time, the asset has faced yet another resistance: the trendline that was formed back in September. At press time, the resistance stays at $0.43, while ADA trades at $0.43.
Despite the one-day volume spike on November 5th, traders are gradually giving up support for the cryptocurrency as the Volume Profile Indicator shows a descending trend that is likely to reverse from the current price level.
In comparison to other digital assets, Cardano has not entered a consolidation channel that would later on become a foundation for a recovery. Instead, bears have been continuously pushing ADA down, and even a 24% price increase we saw recently is nothing compared to the losses Cardano investors had to witness since September 2021.
Unfortunately, all the success ADA has had in the area of development is not being translated into the market. Cardano is one of the least profitable assets in the cryptocurrency market. According to relevant data in October, the profitability of ADA fell below the crucial 15% mark, which pushed most crypto investors, who usually aim for short-term gains, even further.
The most likely reason behind the unpopularity of ADA on the market is the inability to gain momentum at the correct time as the cryptocurrency has been having success in the development field while the market was in a depressive state.
