Back to the list

Why Are bulls in denial even when investors are purchasing Cardano at current price?


coinnounce.com 22 November 2022 08:03, UTC
Reading time: ~2 m

The price of Cardano (1) decreased by 25% in November. Although on-chain data show bulls are still interested, several technical indicators indicate that ADA's downturn is not yet done. A price rally into the $0.39 price range might be sparked by a violation of the $0.35 resistance area. The next move in the price of Cardano will likely determine the trend for several weeks. Although the technical indicators point to bears being in charge, on-chain measures reveal that traders are still purchasing. To determine ADA's future move, key thresholds have been established.

Cardano pricing is at a crucial point.

Concerning signs are emerging for Cardano price as the bears may try to destroy the $0.30 support area. Since the month's beginning, The so-called "Ethereum killer token," ADA, dropped by 25%, and since then, all attempts by bulls to recover have failed. The ADA price is now surrounded by a bearish pennant formation, which might drive the price of the smart-contract token below $0.30.

Image source : Tradingview.com

At the time of writing, the Cardano price is $0.325. Like numerous other leading cryptocurrencies, the increased 8-day exponential moving average is a significant factor in opposition to the bulls. The volume profile indicator has a consistent tapering appearance, indicating that high-cap players are not actively trading and would prefer to follow the next directional move rather than predict where the congestion zone would send the ADA price next. Retail traders are still looking for an ADA bounce despite the negative technicals. According to Coinglass's Long/Short Ratio (2), six out of ten traders are positioned as of November 18

The Long vs. Short Indications

Bulls should focus on a rally toward the $0.39 congestion zone if the market is truly bullish and continues to be so. The price would rise by an extra 22% due to this action. But before boldly striving for greater objectives, the pennant pattern surrounding the current ADA price needs to be disproved. A break over $0.35 (above the 8-day exponential moving average) might start the upward surge that bulls are waiting for, leading to higher objectives.

Back to the list