- The recent price action suggested that the bears are still in control from a long-term perspective.
- Traders should closely monitor the $0.3629 support, as a break below this level could lead to further downside risks.
Cardano [ADA] has been navigating a somewhat uncertain market sentiment, with its price recently succumbing to increased selling pressure from the $0.39 resistance.
As broader crypto market sentiment improved slightly over the past day, Cardano could find support near the 20 EMA. ADA traded at $0.37 at press time after witnessing a nearly 5% decline in 24 hours.
Cardano bulls triggered a rally above near-term EMAs
Source: ADA/USDT
ADA recently rebounded from the $0.31 support level but struggled to close above the resistance level near the $0.39 mark.
While the price action closed above the 20-day EMA ($0.3629) and the 50-day EMA ($0.3752) after the rebound, the recent reversal pulled ADA below its 50 EMA level.
It’s worth noting that the 200-day EMA at $0.4711 acts as a more distant resistance level, highlighting the bearish dominance over the longer term.
The MACD showed a slight bullish edge, with the MACD line slightly above the signal line. However, the MACD finally entered positive territory after a few weeks. This indicates that the immediate selling momentum may be slowing.
For the bulls to regain control, ADA must find a rebound from the 20-day EMA and retest the $0.39 resistance.
The RSI hovered near equilibrium, but buyers should look for a potential bounce-off from the 50-mark. However, any decline below this level can expose ADA to a delayed recovery.
Key levels to watch
The immediate support to watch is the $0.375 level. If ADA can hold above this level, it could attempt to break above the $0.39 resistance. A successful close above this resistance could open the door for a recovery towards the 200 EMA near the $0.47 level.
However, if the bears continue to exert pressure and ADA breaks below $0.3629, it could retest the $0.3454 support level.
Read Cardano’s [ADA] Price Prediction 2024-25
The volume decreased by 3.52% to $292.17 million in the last 24 hours, and open interest increased by 0.96% to $192.97 million. This indicated that traders are still engaged in the market and are waiting for clearer signals.
Source: Coinglass
The long/short ratio for the last 24 hours was 0.8372, indicating a bearish sentiment. However, on Binance, the ADA/USDT long/short ratio was quite bullish at 2.4626 at press time.
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