- The recent price action suggested that the bears are still in control from a long-term perspective.
- Traders should keep a close eye on the support at $0.3629 as a break below this level could lead to further downside risks.
Cardano [ADA] has faced somewhat uncertain market sentiment, with the price recently succumbing to increased selling pressure from the $0.39 resistance.
As broader crypto market sentiment improved slightly over the past day, Cardano was able to find support near the 20 EMA. ADA was trading at $0.37 at the time of writing, after witnessing a drop of almost 5% in 24 hours.
Cardano bulls sparked a rally above the short-term EMAs
Source: ADA/USDT
ADA recently recovered from the $0.31 support level but struggled to close above the resistance level around $0.39.
While the post-recovery price action closed above the 20-day EMA ($0.3629) and the 50-day EMA ($0.3752), the recent reversal pulled the ADA below the 50 EMA level.
It is worth noting that the 200-day EMA at $0.4711 acts as a distant resistance level, highlighting longer-term bearish dominance.
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 immediate sales momentum may be slowing.
For the bulls to regain control, ADA must find a recovery from the 20-day EMA and retest the $0.39 resistance.
The RSI has been hovering around equilibrium, but buyers should look for a possible rebound from the 50 mark. However, any decline below this level could expose ADA to a delayed recovery.
Important levels to watch
The immediate support to watch is the USD 0.375 level. If ADA can hold above this level, it could try to break the USD 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 apply pressure and the ADA breaks below $0.3629, the $0.3454 support level could be retested.
Read Cardanos [ADA] Price forecast 2024-25
Volume fell 3.52% to $292.17 million over the past 24 hours, and open interest rose 0.96% to $192.97 million. This indicated that traders are still active in the market and waiting for clearer signals.
Source: Coinglass
The long/short ratio over the last 24 hours was 0.8372, indicating bearish sentiment. However, on Binance, the ADA/USDT long/short ratio was quite bullish at 2.4626 at the time of writing.