Cardano’s prolonged consolidation phase has left investors speculating about its next big move, especially as it approaches critical support levels amid signs of a potential bearish turn. With the cryptocurrency market’s volatility, ADA’s price activity has recently shown signs of weakening momentum, raising concerns about its ability to regain upward traction.
Cardano Faces Bearish Pressure
Cardano’s current market sentiment reflects increasing selling pressure, particularly among short-term holders who typically hold assets for less than a month. These holders have been more inclined to sell amid market shifts, adding to the weight on ADA’s price stability. A key metric, the MVRV (Market Value to Realized Value) Long/Short difference, indicates that short-term holders remain in profit, marked by highly negative MVRV values. This suggests that the likelihood of these holders selling has grown, potentially creating further headwinds for ADA’s price.
The negative MVRV Long/Short difference is a clear sign of profitability for short-term holders, signaling an increased chance of sell-offs. Should a significant wave of selling emerge, ADA’s upward movement could stall, particularly if the price fails to reclaim lost momentum.
MACD Signals a Shift in Momentum
The macro momentum for Cardano appears to be shifting as technical indicators highlight a potential bearish trend. The Moving Average Convergence Divergence (MACD), a crucial indicator for assessing momentum, has recently recorded a bearish crossover — its first since mid-August. This shift follows more than two months of positive price action, signaling an end to Cardano’s bullish phase and raising the prospect of a continued downtrend.
This MACD crossover is a critical moment for ADA, as it suggests that bearish forces could pose a substantial obstacle to any upward attempts. With the broader market sentiment leaning bearish, ADA’s near-term outlook has dimmed, leaving investors questioning the likelihood of recovery.
ADA Price Prediction – Testing Key Support Levels
Cardano’s price has dropped approximately 10% in recent days, hovering below the $0.33 mark — a level that has acted as a strong support floor for over a month. Losing this critical support level could signal further downside pressure. While a rebound is still possible, ADA may consolidate below $0.33, with this level now potentially flipping to resistance after months of consistent support.
If ADA stays range-bound, the likely short-term trading zone could be between $0.31 (support) and $0.33 (resistance). To break out of this bearish-neutral phase, Cardano would need to breach the $0.33 resistance and aim for $0.37, a crucial upper boundary marking the recent consolidation range. A successful breakthrough above $0.37 would invalidate the current bearish outlook and could signal a renewed uptrend for ADA.
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As Cardano’s price struggles near key support levels, the bearish signals from short-term holder activity and the MACD indicator suggest that ADA may face continued resistance in its path to recovery. Investors are closely watching ADA’s behavior at the $0.33 level, which could either prompt further consolidation or set the stage for a deeper decline. Only a break above $0.37 would provide ADA with the momentum needed to escape this bearish phase and potentially resume a more robust uptrend.
With market conditions and investor sentiment casting a bearish shadow, Cardano’s next moves will likely depend on its ability to hold crucial support levels and counter mounting selling pressure from short-term holders.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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