Though a surge of the prices arose in March, corrections quickly began, dragging the price of cryptocurrencies down the charts. With the said pattern being seen by the Bitcoin industry, the altcoin market, too, seemed to be showing signs of weakness in press time.
With a market capitalisation of $38.14 billion, Cardano has recently became the third-largest cryptocurrency on the market. At the time of publication, ADA stabilised at $1.20 after its correction.
Cardano hourly chart
According to Cardano’s one-hour table, even though the price of ADA has shifted within a narrow range, the effect of the sudden corrections has driven it towards its degree of support. ADA’s price has been swinging between $1.18 and $1.28 over the past few days, with cryptocurrency charts seeing the forming of a descending triangle.
Given the bearish trend that is spreading through the market, there may be another price drop for ADA.
Although the extent of support was solid, the dropping height of ADA’s price candlesticks seemed to illustrate the market’s escaped turmoil. The Bollinger Bands’ convergence has seen a decline in market uncertainty. In the meanwhile, the Signal line and the 50 moving average have jumped above the market bars, underlining the emerging bearishness.
The Relative Strength Index moved close to the oversold range and was at 42 points at the time of publishing. This meant that the selling pressure was a little high, with ADA’s falling value aligning with this signal.
The sector also saw some support for the market bulls to climb. If this momentum continues to climb, another decline could take the valuation of ADA to its next level of support.
Crucial levels to watch out for
Take profit: $1.09
Risk to Reward: 1.88
ADA’s one-hour chart showed that the digital asset registered a sloping price that tested its press time support. If the price of the crypto is not maintained at this stage, the price of the digital asset will fall to $1.07.
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