The cryptocurrency market, once a fiery furnace of bull runs and record-breaking surges, has now become an icy landscape echoing with the chilling sounds of a bearish trend. Even Bitcoin, the trailblazer of digital currencies, is struggling to surge from its bearish channel, signaling a broader downturn in the market. Amidst this somber backdrop, Cardano (ADA), a prominent altcoin, has been flashing an extremely bearish signal. As the ADA price tumbles continuously near $0.36, there is a possibility of a massive sell-off in the next few days.
Intensity Builds Up Among ADA Bulls
Information from IntoTheBlock reveals that the previous week was a favorable one for Cardano bulls, as indicated by data on large-scale buy and sell transactions. Importantly, the data only considers addresses that have traded a minimum of 1% of the ADA’s multi-million dollar volume.
The data shows that hefty bearish sell-offs accounted for 158.6 billion ADA last week. However, substantial bullish activities drove their purchase volume to nearly $160 billion. The number of such addresses is evenly split between sellers and buyers, with a count of 36 each.
Despite the seemingly minor difference, it underscores that even with a recent 18% decline in ADA’s price over the last 30 days, a significant amount of capital continues to hold a bullish stance on the Cardano token.
The Bid-Ask Volume Imbalance for ADA persists in a bullish state, suggesting a sustained buying momentum. This metric gauges the disparity between the quantity of ADA on the purchasing side versus the selling side of the order book. A positive imbalance indicates a greater demand to purchase ADA over selling it, which could potentially boost the price.
Will Bears Push ADA Price Below $0.36?
The price of Cardano (ADA) is currently hovering at a crucial juncture where significant resistance and support levels intersect. This could potentially trigger a significant price movement in the near future.
While the long-term indicators suggest a continued downward trend, the direction of the imminent breakout from this short-term fluctuation, either upward or downward, will be instrumental in forecasting the trajectory of the future trend.
As of writing, the ADA price is trading at $0.37, surging over 0.4% in the last 24 hours. Cardano’s ADA token has witnessed a minor Doji candle today, suggesting an intense battle between the bears and bulls. After forming a low near $0.366, the ADA price has successfully rebounded and maintained momentum above the 23.6% Fib level.
Analyzing the price chart, it is anticipated that bears may try to send the altcoin’s price near $0.36 to test the market’s patience. If bulls form a bullish channel in the RSI chart near the 42-level, the ADA token can surge above its EMA100 resistance and head toward its next resistance at $0.38-$0.39.