Cardano (ADA) is facing significant challenges as it battles to break through the $0.926 resistance level. Since mid-August, this popular altcoin has repeatedly attempted to rally past this key barrier but has consistently encountered heavy selling pressure.
Understanding the Bearish Indicators on ADA
The latest rejection, on September 14, triggered a 5% decline, further fueling bearish momentum. According to the latest technical analysis, signals from key indicators suggest a continuation of the downtrend for Cardano if bulls fail to reclaim lost territory.
One of the primary indicators, the Moving Average Convergence Divergence (MACD), is forming a bearish crossover on the daily chart. This crossover occurs when the MACD line drops below the signal line, signifying weakening bullish momentum and signaling potential deeper losses.
Another crucial indicator, the Parabolic Stop and Reverse (SAR), now aligns with bearish sentiment. The dots, which previously acted as dynamic support, have flipped above the price, acting as resistance. Currently, this indicator suggests bearish dominance, with the SAR position at $0.952 while Cardano trades at $0.869.
What’s Next for Cardano’s Price?
With the MACD and Parabolic SAR aligning against bulls, Cardano’s outlook leans toward further downside. If the $0.802 support level doesn’t hold, prices could decline to $0.677, presenting a significant challenge for ADA’s recovery.
However, if bulls successfully reclaim the $0.926 resistance, it could ignite a rally, potentially pushing the price toward $1.079, a level last seen in March of this year. This critical breakout point could restore optimism among investors.
How Can You Stay Informed?
For those looking to monitor ADA’s movements closely, subscribing to a daily cryptocurrency newsletter, like the Editor Harsh Notariya’s Daily Crypto Insights, can keep you updated on market trends and technical signals.
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Disclaimer: This analysis is for educational purposes only and not financial advice. Always research before making financial decisions.
