The cryptocurrency market, once a fiery furnace of bull runs and record-breaking spikes, has now become an icy landscape reverberating with the chilling sounds of a bearish trend. Even Bitcoin, the pioneer of digital currencies, is struggling to break out of its bearish channel, signaling a broader downturn in the market. Amid this gloomy backdrop, Cardano (ADA), a prominent altcoin, has issued an extremely bearish signal. As the ADA price continues to drop near $0.36, there is the possibility of a huge sell-off in the coming days.
Intensity increases among ADA bulls
Information from IntoTheBlock shows that the previous week was favorable for Cardano bulls, as evidenced by data on large-scale buy and sell transactions. Importantly, the data only takes into account addresses that have traded at least 1% of the ADA’s million-dollar volume.
The data shows that major bearish selloffs last week accounted for 158.6 billion ADA. Substantial surging activity, however, brought their purchase volume to nearly $160 billion. The number of such addresses is split evenly between sellers and buyers, with a count of 36 each.
Despite the seemingly minor difference, it underscores that even with a recent 18% drop in the price of ADA over the past 30 days, a significant amount of capital continues to take a bullish stance on the Cardano token.
The Bid-Ask Volume Imbalance for ADA continues in a bullish state, indicating continued buying momentum. This metric measures the difference between the amount of ADA on the buy side and the sell side of the order book. A positive imbalance indicates a greater demand to buy ADA than to sell it, which could potentially push the price up.
Will Bears Push ADA Price Below $0.36?
The price of Cardano (ADA) is currently at a pivotal juncture where significant resistance and support levels are intersecting. This could potentially trigger significant price movement in the near future.
While the long-term indicators point to a sustained downtrend, the direction of the imminent breakout of this short-term fluctuation, both up and down, will play an important role in predicting the trajectory of the future trend.
At the time of writing, the ADA price is trading at $0.37, up more than 0.4% in the past 24 hours. Cardano’s ADA token has witnessed a small Doji candle today, indicating an intense battle between the bears and the bulls. After forming a low near $0.366, ADA price has successfully recovered and maintained momentum above the 23.6% Fib level.
Analyzing the price chart, it is expected that bears will try to send the price of the altcoin near $0.36 to test the patience of the market. If bulls form a bullish channel in the RSI chart near the 42 level, the ADA token may rise above its EMA100 resistance and move into its next resistance at $0.38-$0.39.
