Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The drop below $0.24 was accompanied by strong spot selling volume and strong conviction short sellers.
- Another downward move was signaled after the structure turned bearish again.
The overall bearish outlook for Cardano remained unchanged as the price moved below a significant lower time frame to once again shift the bias in the sellers’ favour. Holders lost and weighted sentiment fell.
How much is 1, 10 or 100 ADA worth today?
The bulls managed to mount a weak rebound after recent heavy losses, but lacked any conviction. Following the developments of the past 48 hours, traders can expect another downward move for ADA.
Cardano made up some of its losses on declining trading volume
Source: ADA/USDT on TradingView
The drop from $0.33 to $0.22 started a week ago. Highlighted in white are the major support levels on the daily time frame. The $0.297 and $0.271 quickly failed, but buyers barely managed to hold the $0.239 level. Still, the bearish intent in the market was already clear.
The 4-hour RSI has been below the neutral 50 for the past ten days. The Fibonacci retracement levels showed that the 61.8% level tested as resistance, but the sellers did not budge. In addition, attempts to establish a bullish structure were thwarted when ADA fell below the $0.259 mark. This represented a higher low in the bulls’ drive to raise prices.
The Bollinger bands retreated south but started to rebound in recent days as the move to $0.3 failed. The $0.239 and $0.22 are expected to serve as support should Cardano face continued selling pressure. A trip to $0.1939, the extension level of 23.6%, cannot be ruled out either.
The rapid depression in the Open Interest indicated bearish dominance
Source: Coin analysis
While the RSI underlined the bearish momentum behind Cardano over the past two weeks, the spot CVD highlighted strong selling pressure behind the asset in June. Open Interest is also down just over $80 million since June 9. In addition to falling prices, the conclusion was that sentiment was bearish and capital flows to the market were drying up.
Read Cardanos [ADA] Price Forecast 2023-24
Long positions have been discouraged and the majority of speculators will probably want to stay sidelined until Cardano can see another uptrend. On June 9, the OI spiked along with plummeting prices to show that sellers were at the helm. This could be repeated in the coming weeks if ADA drops below $0.239 again.
