Cardano Price Movement Analysis for 8th September, 2021

 131 Interactions,  2 Today

Recently, there have been several concerning indicators in the Cardano market. Bearish patterns on both the ADA price and its indicators, along with a broader market sell-off, resulted in significant losses. Heavy selling pressure was visible in the market, with ADA recording its worst daily percentage loss since 21 June, with a single candlewick falling as low as $2.00.

Various support levels were now under pressure to reduce selling pressure, and if purchasers were not cautious, ADA’s value would tumble another 22 percent.

ADA was trading at $2.39 at the time of writing, with a market valuation of $79.89 billion.

 

Cardano Daily Chart 

Cardano’s drop was entirely predictable when a rising wedge developed on its daily and 12-hour charts. A breakdown produced a massive red candle with an even larger candlewick, dropping as low as $2.00 and approaching the 50-SMA (yellow).

Despite the fact that the session began at $2.51, the candle had violated the defensive zone of $2.46 and appeared to be extending losses. The current support region at $2.26 would be critical to ADA’s performance in the event of a bullish resurgence. Indeed, the 4-hour timeframe (not displayed) revealed that purchasing pressure has been gradually increasing at the aforementioned level.

See also  Budweiser spends $120,000 on 'fan art' NFT and the Beer.eth domain.

This does not necessarily imply that ADA will retest $3 anytime soon. There is a risk of reactionary purchasing during the next 24 hours, but sellers are expected to keep prices stable. As ADA stabilises, the $2.20-$2.56 range may become more important in the future.

On the other hand, a close below $1.80 would shatter ADA’s bullish long-term outlook.

Reasoning 

The daily RSI broke south from a bearish descending triangle and fell below its equilibrium level. The mid-line has frequently served as support/resistance, and it is too early to predict an extended downturn.

The Awesome Oscillator recorded its 14th consecutive red candle, indicating that buying demand has been steadily declining since late August. This resulted in the MACD’s first bearish crossover since July 11th.

Given that both the Awesome Oscillator and the MACD were trading at exuberant levels, the present stabilisation can be regarded as healthy in the long run.

 

Conclusion 

As ADA seeks to limit losses above $2, the price may settle between $2.20 and $2.58 in the following days. Reactionary purchasing might bring the price back towards $3, but this increase is likely to be fleeting as ADA’s indications reset before the next swing.

See also  Here's why the new 'Cardano Uniswap' may not be a threat just yet.

However, traders should be wary of a closure below $1.88, as this would put the market at risk of another sharp sell-off.

 

Subscribe to our newsletter

Loading

Leave a Reply

Your email address will not be published. Required fields are marked *