Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The ADA market structure was bearish on the 1-day chart.
- The move below $0.348 further cemented the sellers’ dominance.
Cardano [ADA] showed bearish intent on the higher time frame price charts in the first week of May. The move below the $0.371 level showed bears were in control. That selling pressure intensified in the past week.
Read Cardanos [ADA] Price Forecast 2023-24
While Cardano showed good performance in other areas such as DeFi activity or development, market sentiment was not in favor of buyers. At the time of writing, ADA Bears were firmly in control.
The Bulls struggled to hold support, but were forced to retreat
Source: ADA/USDT on TradingView
The level marked in blue on the charts showed the bearish structure break on May 8. In late May, the price pushed to local highs at $0.386 but was quickly overwhelmed by the bears.
The news that the US SEC was suing Coinbase and Binance US gave the bears the impetus they needed to lower prices.
On the daily time frame, the move below $0.3485 (white) meant that ADA is on track to form a new low and continue its downtrend. In the south, the low of $0.297 from March was a possible target for months to come.
Other shorter-term support levels were highlighted in orange based on the 4-hour chart. For example, the $0.3366 was almost perfectly respected on June 6 before jumping to $0.357. Therefore, the next levels for ADA traders to watch out for are $0.3366 and $0.3157.
The OBV has been in a slowly declining trend since mid-April, but trading volumes have not been significantly strong over the past three weeks. So the OBV did not fall noticeably in June. Meanwhile, the RSI showed increasing bearish momentum.
The average coin age had risen, but prices fell
Source: Sanitation
Throughout May, the average coin age of 90 days was on an upward trend. This showed an accumulation of ADA across the network. Still, Cardano has seen increasing bearish sentiment in recent trading days. ADA prices fell 10.7% in the past 72 hours.
How much is 1, 10, 100 ADA worth today?
Yet the dormant circulation was nowhere near the peaks it formed in April or May. This could be a sign that the price drop was a result of panic, but long-term holders persisted. It remains to be seen if they can reverse the downtrend.