The bulls will control the market again when the price breaks through the closest resistance at USD 1.14. Buying pressure on a broad support zone around USD 0.8 might lead to a significant rally in the coming days.
A scenario of uncertainty and widespread selling supports sellers as the Cardano (ADA) price remains quite bearish.
ADA is trading at around USD 0.80 and has accumulated a 0.3% loss in the last 24 hours. Its daily trading volume is above USD 665.65 million, and its market capitalization is about USD 25.61 billion. It occupies 9th place in the cryptocurrency ranking, according to CoinGecko.
The following analysis will allow knowing what investors can expect from the value of the cryptocurrency in the coming days.
Weekly Technical Analysis of the Price of Cardano
The weekly ADA/USDT chart shows a clear short/medium-term downward trend due to the increasingly lower lows.
The price crosses the 8-week EMA and 18-week SMA to the downside, and the latter two serve as dynamic resistances.
The value of ADA is about to lose the nearest support level around USD 0.82. If that happened, the ground would be clear for the 200-week SMA at USD 0.5. In the case of looking for horizontal support, USD 0.34 would be next.
Although the outlook of Cardano is bearish in the short term, the bullish force remains dominant in the long run.
ADA is making a necessary correction after a significant bullish rally, like the other cryptocurrencies in the market.
There will likely be further selling in the short term, but the reluctance of sellers to push the price lower indicates that space is running out.
There will be confirmation that the bulls are coming back when the price breaks through the descending trend line on the chart.
More conservative investors might expect to see continued higher lows on the weekly chart. The closest resistance that buyers should cross is at USD 1.14.
Key Short-Term Levels in the Price of ADA
The daily ADA/USDT chart allows making a more accurate prediction about the price in the short term.
In that time frame, it is possible to observe that Cardano has a clear short-term downtrend, followed by the 8-day EMA and 18-day SMA. Therefore, sales will quite likely continue to expand soon.
However, there is buying pressure on a broad support zone around USD 0.8, possibly leading to a significant rally.
As long as the price does not break through any resistance, a further drop is likely to occur afterward.
Investors can expect a significant bullish respite if the price breaks through the nearest resistance at USD 0.88 in the next few hours/days.
The performance of the general cryptocurrency market as a whole affects the price of altcoins like Cardano. Besides, news events like the conflict between Russia and Ukraine have contributed to their depreciation. However, the bulls might control the market again if the price of ADA does not lose its current support zone.
By Alexander Salazar
