Since its price has been declining even if the much awaited Chang hardfork was managed properly, Cardano (ADA) is still having difficulties. The bitcoin market has not responded well even if the Layer-1 blockchain has seen most recent developments enhancing its worth.
Cardano’s Chang hardfork is a major update introducing many new capabilities with its on-chain voting, delegate representatives, increased smart contract capabilities, and new governance structure with better cost models.
These improvements let ADA holders directly engage in governance decisions or give voting power to trustworthy representatives so improving the distributed governance of the network.
Although these improvements have been made, Cardano’s price has dropped by 2.7% and is now selling at $0.3335, as of this writing.
About $307.4 million worth of ADA is traded every day, and the market value of the cryptocurrency is $11.75 billion. The drop in price shows that people are still trying to sell the token, as it has been going down since the hardfork.
Cardano has seen $731,46K in liquidations in the last 24 hours, with most of those being long contracts worth $698,32K. This imbalance shows that traders who were betting that prices would go up have been caught off guard by the market’s continued downward trend. This adds to the general bearish mood in the market.
The idea that bears are strongly in charge is supported by technical analysis. ADA is moving close to the lower end of its Bollinger Bands right now, which could mean that it is oversold. This could mean a short-term stabilization or small recovery, but the general volatility of the market means that prices could still go down even more.
Cardano’s Technical Indicators Confirm Persistent Selling Pressure, Bearish Outlook
The Moving Average Convergence Divergence (MACD) indicator shows that there is steady selling pressure. The MACD line is below the warning line, which means that the downward trend is likely to continue.
The Relative Strength Index (RSI) is also 38.56, which is below the middle level of 50. This means that prices are still falling without being oversold yet.
The Aroon indicator also shows that the direction is mostly down. The Aroon Down is at a full 100.00%, which means there is strong downward momentum. On the other hand, the Aroon Up is at a lower 35.71%, which means there are weak upward movements and supports a bearish outlook.
Few analysts are quite bearish even if prices are down. According to Crypto Yappers, Cardano has been losing value all over the day. This has been part of a trend called a “Falling Broadening Wedge” for some months now.
This pattern consists in dropping and varying trendlines. With increased volatility of time, these lines show lower lows and higher highs. Should ADA outperform the top trendline of this wedge, the price might quickly turn around and climb.
Traders are paying close attention to this trend since the increase in volume makes them believe that an escape might be just over the horizon. It will be really crucial to monitor this level in the next few days. We will have to wait to see whether Cardano can stop declining with its recent developments.
