Following a decent bullish momentum, the overall cryptocurrency landscape is currently undergoing a price correction. Amidst this ongoing correction, Cardano (ADA), the eighth-largest cryptocurrency, is indicating a bearish move.
Is Cardano (ADA) bearish?
Recently, on February 23, 2024, a prominent trader and analyst named Ali posted on X (formerly Twitter) that the TD Sequential indicator is currently showing a sell signal on the 3-day chart for Cardano (ADA). It’s worth noting that this indicator has a high accuracy rate in predicting price correction signals. However, in the last two instances when this indicator signaled a bearish trend, ADA experienced significant price corrections.
Cardano (ADA) technical analysis and key levels
According to expert technical analysis, in addition to the TD Sequential indicator, Cardano (ADA) experiences resistance near $0.62 on a daily time frame. Historically, whenever Cardano (ADA) reached this level, it experienced downside momentum. This time, aside from the TD Sequential indicator and resistance level, Cardano (ADA) is also forming a double-top price action pattern.
RSI signal bearish move for ADA?
In the realm of technical analysis, this pattern signals a bearish sign. Furthermore, this pattern is supported by the RSI (Relative Strength Index), which also indicates a bearish signal as it forms a bearish divergence, with the ADA in the overbought zone. According to the analysis, if the crypto market remains dull, we may witness a decline to its next support level, which is $0.46, and the 200 EMA (Exponential Moving Average) is also positioned at this level.
Currently, Cardano (ADA) is trading near $0.58, and in the last 24 hours, it has experienced over 2.5% of downside momentum. If we look at ADA’s performance over a longer period, in the last 7 trading days, the ADA price has dropped by over 2.5%. Meanwhile, in the last 30 days, ADA has experienced a significant 30% upside momentum. Additionally, with the price correction, the 24-hour volume has also dropped by over 22% and currently stands near $428 million.
Cardano (ADA) is not the only cryptocurrency currently experiencing downside momentum; top cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) are also going through a price correction. In the longer term, we can consider this a healthy price correction, which is necessary for any tradable asset before a bullish move.
