Cardano price prediction: Downside risks grow as ADA stuck at $1.272
The outlook for card prices is becoming pessimistic as fears of a bear market increase.
The ADA/USD pair is struggling to recover from the $1,350 level as downside risks increase exponentially.
Cardano consolidates below $1.30 while volume declines.
The 55-day simple moving average at $1.30 supports the price action.
The bears could take over and push price below the $1,100 support level.
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The decline in Cardano’s price could get serious as the pair struggles to hold on to the $1.30 level. At the time of writing, the ADA/USD pair is standing still at $1,272. The downtrend is strong and the bears are pushing the pair close to the $1,100 support level to make the daily price forecast for Cardano negative.
The price of Cardano is moving quickly towards the $1.20 support level amid a decline in the Bollinger Bands. Over the past week, bullish momentum on the hourly chart has all but disappeared. The drop is similar to the bitcoin correction as the broader crypto market heads into a neutral week.
The small bounce is just a dead cat bounce after a sharp decline when prices hit a low of $1,216. The price began to show signs of weakness last weekend, and over the previous four days it had fallen by about 34%. Cardano’s total market capitalization is also nearly $40 billion.
Cardano price movement in the last 24 hours: Bears break through key support levels
Although Cardano is trying to break through the $1.30 level, the bears are pushing the price to new lows. The hourly technical charts are currently recovering from the previous collapse, in line with Cardano’s price expectations. The rise in early April was fueled by the public release of Coinbase, inflation in the US, and continued improvements in the Cardano network. The joy was short-lived, however, as the bullish outlook for Cardano prices is in jeopardy.
The crypto market as a whole is still reeling from the news of rising inflation in the US. The Federal Reserve will continue its accommodative monetary policy, which means more liquidity in the markets. Moreover, the news that Cardano has brought smart contracts online has also brought positive vibes to the market. It remains to be seen whether this initiative will allow Cardano to better reach the DeFi market.
The current price action can be described as a relief rally after a decline in line with Cardano’s price expectations. The sharp decline has erased some of last week’s gains and threatens to derail the upward trend on the daily charts.
4-hour chart ADA/USD: Relief rally not likely to become booms
Cardano price chart TradingView
The consolidation of ADA/USD shows signs of further decline. An increase in the Average True Range (ATR) indicates an increase in volatility. The 25-day moving average of $1,2500 supports the price.
The RSI is at 50, reflecting traders’ neutral sentiment as it moves into oversold territory. The MACD is drifting into negative territory but surprisingly has an upward cross. This may be the only positive signal in a sea of negative technical indicators. The overall outlook for Cardano prices is bearish, as bears and bulls vie for dominance. The key resistance levels to keep an eye on are at $1.3500 and then $1.5545.
Cardano price action has been limited in response to the recent decline. The rise that began in early February is now consolidating, which is a positive sign for a mature asset. An upward trend is followed by a corresponding consolidation. However, in the broader context, the current price decline is nominal and ADA/USD is still bullish on the daily timeframe.
Cardano price forecast Conclusion: ADA steep climb ahead
After rising for more than a month, Cardano’s stock price is now in a consolidation phase. It remains to be seen how far the bears can push the ADA price in their attempt to stop the bull market. Some of these declines can be attributed to profitability, as the pair was in a prolonged bull market.
Looking to rally, the pair will encounter resistance at $1.35 per ounce, where the bears will try to resume selling pressure. The price of ADA is encountering significant resistance at the $1,500 level, and this level will be crucial for the resumption of long-term bullish movement. The technical indicators show a mixed picture, but the short-term trend remains negative.
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