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We are halfway through July, and the majority of the market movement for Cardano has been negative. The crypto-asset began the month over $1.45, but has since been on a steady slide. The alt’s price has been stabilising over $1.30 for a few days as on-chain activity increased. However, it has dropped dramatically again in the last week.
Cardano was remained the fifth largest cryptocurrency in the world at the time of publication, with a market valuation of $39.3 billion.
Cardano 4-hour chart
Cardano has been fluctuating inside the trendlines of a falling channel since the first week of July. While the market structure appeared to be suggesting a potential bullish breakout, one was unlikely to occur in the coming days as the price continued to fall below the channel’s middle value. At press time, the connection between the 20-EMA and the 20-SMA was likewise bearish, as the blue line remained above the orange line.
Before any positive arguments can be made, the $1.285 resistance level must be broken. However, given the crypto’s reduced volumes, the alt’s price may return to the previous $1.195 support level.
The Cardano-Bitcoin connection has been a significant component in this surge, as the BTC-ADA index has risen on the charts. In terms of current market indicators, the Relative Strength Index (RSI) appeared to be highlighting significant negative pressure as the oversold zone was reset.
At press time, the MACD line remained above the Signal line, indicating that the bear market would continue.
Finally, on the whole, Volumes were still gradually decreasing — an indication of consistent selling volumes among ADA holders.
Getting to the bottom?
Following last week’s bearish finish, it’s impossible to predict Cardano’s imminent bottom. However, the asset is projected to fall to $1.19-$1.10 in the next days.