- Cardano price is down 25% for the month of November.
- Several technical factors suggest ADA’s downtrend is not yet over, but on-chain metrics show bulls are still interested.
- A breach of the $0.35 resistance zone could induce a countertrend rally into the $0.39 price territory.
Cardano price next move will likely define the trend for weeks to come. The technicals suggest bears are in control, but on-chain metrics show traders are still buying. Key levels have been defined to gauge ADA’s next move..
Cardano price in make-or-break
Cardano price shows signals that warrant concern as the bears may attempt to obliterate the $0.30 support zone. Since the start of the month, ADA, the self-proclaimed Ethereum killer token, fell by 25%, and since the decline, all bullish attempts to recover have been rejected. Now, a bearish penant pattern surrounds the ADA price, which could send the smart-contract token to sub-$0.30 price levels.
Cardano price currently auctions at $0.325. Like several top cryptos, the surged 8-day exponential moving average plays a key role in resistance against the bulls. The volume profile indicator shows a persistent tapered look which suggests high-cap players are sidelined and would rather join the next directional move rather than speculate on where the congestion zone will send the ADA price next.
ADA USDT 3-Hour Chart
Despite the bearish technicals, retail traders are still hopeful for an ADA bounce. Coinglass’s Long/Short Ratio suggests six out of every ten traders are currently positioned Long as of November 18
Coinglass's Long vs. Short Indicator
If the market is genuinely bullish a persist, a rally toward the $0.39 congestion zone will be a key target for bulls to aim for. Such a move would result in an additional 22% increase in price.
Still, the pennant pattern surrounding the current ADA price will need to be invalidated before confidently aiming for higher targets. A breach above the $0.35 (above the 8-day exponential moving average) could induce the uptrend rally toward higher targets that bulls are hoping for.
In the following video, our analysts deep dive into the price action of Cardano, analyzing key levels of interest in the market. -FXStreet Team
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.