If buyers aren't forthcoming, Cardano holders can expect the following outcomes.

The price of Cardano soared as a result of the 2021 hype. Most new investors who arrived this year appear to be at a loss.. As long as the asset couldn't hold onto the $1 psychological barrier, it was in danger of falling once more. The coin has a correlation coefficient of 0.76% with the Bitcoin currency. It also doesn't react as strongly to a bullish Bitcoin as it does to a bearish one. Cardano's selling pressure may increase as a result of these factors.

ada/usdt
ADA/USDT 1 day; Source Tradingview

The downward price trend that has been going on for the last few months was clearly visible on the charts. This support level was referred to as "must-hold" in December by the bulls. The $1 level was held in the same regard in late January and early February. In both cases, the levels have been broken This morning, it appeared that the price would close below the $0.817 level for the day.

If ADA wants to change its longer-term outlook from bearish to bullish, it needs to support the $1 price level. Short-term demand at $0.75 has kept the price of ADA afloat, but this is unlikely to last.

Rationale

ada, cardano chart

As the RSI made higher lows while the price made lower lows, it formed a bullish divergence (white). However, the recent trend has been bearish, so this divergence will probably not change the trend. On top of that, the price had already begun to fall.

Oscillators such as the Awesome Oscillator were consistently below zero. Consequently, the bears had all the power in the market. An additional sign that selling volume has been greater than buying volume on a day-to-day basis is the OBV moving lower. There was also a bearish reading on the CVD indicator

Conclusion

Overall, momentum and selling volume were both showing signs of weakness. The structure of the market was also bearish, and the $1 resistance zone had to be broken. Considering the current state of affairs, this was a highly unlikely outcome. The prices of $0.75 and $0.69 in the southern hemisphere may see a small increase.

** Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of USA GAG nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

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