- ADA’s price dipped below the 9 and 20 EMA lines on the 4-hour chart.
- CoinMarketCap shows that the price of ADA stands at $0.4001 at press time.
- Technical indicators suggest that ADA’s price will continue to drop in the next 24-48 hours.
Cardano is a third-generation, decentralized proof-of-stake (PoS) blockchain platform designed to be a more efficient alternative to proof-of-work (PoW) networks. Scalability, interoperability, and sustainability on PoW networks like Bitcoin are limited by the infrastructure burden of growing costs, energy use, and slow transaction times.
Current Market Standing
Cardano (ADA) is ranked as the eighth biggest project in terms of market cap, according to CoinMarketCap. It experienced a 24-hour price drop of 2.49% – taking its price down to $0.4001 at press time. The Ethereum-killer’s market cap currently stands at $13.568 billion.
Meanwhile, ADA’s 24-hour trading volume currently stands at $370.41 million. Furthermore, the price of ADA is nearer to its 24-hour low at $0.3843. The altcoin’s daily high stands at $0.4024.
Despite the 2+% drop in ADA’s price in the last 24 hours, its weekly performance is still in the green and stands at +0.90%.
The price of ADA has dropped below the major support level at $0.3983 in the last 24 hours. In addition to this, ADA’s price has entered into a short-term bearish cycle after the 9 EMA line crossed below the 20 EMA line on the 4-hour chart.
In its attempt to recover 4-8 hours ago, ADA pumped to a high of $0.4033 before retracing back down to close the 4-hour candle at $0.3919. As a result, ADA’s price is now trading below the 9 and 20 EMA lines on the 4-hour chart.
The relative positions of the 9 and 20 EMA lines on ADA’s 4-hour chart is not the only bearish technical flag. Over the last 24 hours, the RSI line on ADA’s 4-hour chart has crossed below the RSI SMA line. Furthermore, the RSI line is sloped negatively towards oversold territory – suggesting that ADA’s price may continue to fall in the coming 24-48 hours.
Should ADA’s price drop below the support level at $0.3833, then the next target for the altcoin’s price will be $0.3659.
A reversal of the current bearish trend will be indicated when ADA’s price closes above the 9 and 20 EMA lines on the 4-hour chart.
Looking at the daily chart for ADA/USDT, the price of ADA is resetting on the 9-day EMA line. This support level may not hold as ADA’s price has already dropped below the level today and is targeting the support at $0.3833.
If ADA’s price closes today’s trading session below the 9-day EMA, then it will break below the support level at $0.3833 and will look to do the same with the 20-day EMA line.
Despite the 9-day EMA being positioned above the 20-day EMA line, the daily RSI indicator is currently flagging bearish. At press time, the daily RSI line is positioned below the daily RSI SMA line. In addition to this, the daily RSI line is sloped negatively towards oversold territory. This suggests that ADA’s price will drop in the coming 24-48 hours.
This bearish thesis is supported by the amount of sell volume that has entered ADA’s charts over the last 3 days.
Based on the bearish sentiment expressed on ADA’s 4-hour chart where the 9 EMA line crosses below the 20 EMA line, and the price of ADA currently resting on the 9-day EMA line, it’s fair to say that the price of ADA will drop in the coming 24-48 hours. The RSI indicators on both ADA’s 4-hour and daily charts also suggest that ADA’s price will continue to drop in the coming 24-48 hours.
The key confirmation of this bearish thesis will be if ADA’s price closes today’s trading session below the 9-day EMA line.
Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.