Crypto Technical Analysis

Cardano Technical Analysis: ADA Under Bearish Influence, Will Vasil Hard Fork Retrieve the Rally?

ADA Technical Analysis

Key Takeaways:

  • The Cardano(ADA) price closed the previous day’s trade at $0.464 with a market capitalization of $16.20 billion and a circulating supply of 34.18 billion ADA
  • The ADA price broke out of the bearish pattern and is expected to accumulate gains to propel high ahead of the much awaited Cardano Vasil Hard Fork
Current Price $0.4689
Market Cap $16.02 billion
Circulating Supply 34.18 billion
Total Supply 34.85 billion
Vol (24H) $1.03 billion
Change (7D) -5.54%

Cardano Technical Analysis for September 2022

Cardano price for a pretty long time has been trading within a descending triangle which is generally considered as bearish. However, for the past couple of months, the price is maintaining a parallel consolidation, as bears restricted the price below $0.6. As the price began with a recovery from the lower support since the beginning of the month, a huge bearish action dragged the price 

Presently, the volume has been on the back foot and hence the token is finding it difficult to validate a firm upswing. In the coming days, the pierce may eventually retest the lower support close to $0.42 and attempt a rebound. If failed, may slice through these levels and test the last point of defence at around $0.38.

A breakout from the descending trend appears to be predetermined which may lay down a significant upswing later. 

Technical Analysis at a Glance

The ADA price has experienced an extreme bearish action since the beginning of the year and hence is currently trading along the lower support from nearly 4 months. The token also experienced investors’ shift of focus of let as the much-awaited Vasil Hard Fork differed many times. However, with the announcement of the date, the price is expected to gain significant bullish momentum to regain lost levels soon.

Short-Term A huge selling pressure has been accumulated and hence the ADA price may continue to drain profusely
Mid-Term The bulls appear to have exhausted which may reversely impact the price in the coming days 
Long-Term The bearish volume has eased but the buying volume is pretty low to offer a strong push for the ADA crypto.

Technical Indicators & Pivot Levels

Indicator Value (STF/HTF) Action (STF/HTF)
Relative Strength Index(RSI) 37.7 / 38.00 Sell / Sell
MACD -0.005 / -0.159 Sell / Sell
Average Directional Index(ADX) 48.88 / 28.06 Sell / Sell
Ultimate Oscillator 46.28 / 46.92 Sell / Sell
Bull-Bear Power -0.046 / -0.06 Sell / Sell

Pivot Levels

Moving Average Short Term Long Term
MA 5 $0.47 $0.472
MA 10 $0.49 $0.493
MA 20 $0.50 $0.511
MA 50 $0.492 $1.006
MA 100 $0.47 $1.08
MA 200 $0.492 $0.572

The latest bearish action has drained the token to a large extent and hence most of the indicators are extremely bearish in all the time frames. RSI is heading towards the south while the selling pressure has been mounted heavily and hence the MACD is also extremely bearish. However, the token is highly volatile in the short term which may result in significant price swings. 

In the longer time frame, the ADA price appears to remain within a consolidated trend as the indicators are bearish but the volatility is also pretty less. On the brighter side, positive market sentiments amid the upcoming hard fork may coil up and pave way for a bullish divergence. 

Additional Read: Cardano Price Prediction

Cardano On Chain Metrics Analysis

  • The trading volume for nearly a week has been on a rise which is surging slowly yet steadily

Source: Santiment

  • The number of ADA whales holding between 1000 to 100,000 ADA coins has been constantly raising while the holders holding above 100K still remain passive.

Source: Santiment

  • The daily active address since the beginning of August has been within a consistent range and hence displays the tendency of the traders over the asset

Source: Santiment

Cardano (ADA) Technical Analysis for Short Term

Cardano Price

Source: Tradingview

  • The Cardano price amid the recent price action dropped down, breaking the bearish rising wedge pattern
  • The price appears to be poised for a rebound, but if the bear enhances their strength, ADA may drop close to the lower support around $0.44 and later attempt a flip
  • The upcoming hard fork is expected to uplift the price to reclaim the positions above $0.5 to reach the levels between $0.52 & $0.54
  • The volume also supports the bullish narrative and hence the current consolidation may be eased very soon

Cardano (ADA) Technical Analysis for Long-Term

Cardano

Source: Tradingview

  • The Cardano price is trading within a bearish, descending triangle for nearly 4 months and currently appears to have approached the peak
  • Therefore, a slight bearish action is expected that may compel the price to test the lower support or even may break these levels to test the next point of defense below $0.4
  • As the market sentiments are expected to coil up with the Ethereum Merge followed by Vasil Hard Fork, the price may certainly not break down below the support zone
  • Hence it may undertake a minor ‘U-shape’ recovery to reach $0.55 initially and further head towards $0.6 after withstanding bearish action

Where & How to Buy Cardano (ADA)?

If you are looking out for a better platform to buy Cardano (ADA), then here it is!

CoinDCX, India’s leading crypto exchange has a huge active user base within the market. Registering with CoinDCX is extremely simple, just follow the below-mentioned steps, 

  • Download the CoinDCX crypto app on your smartphone
  • Register by entering your details
  • Once your profile is verified, fund your wallet and buy ADA

Additional Read: Cardano Price Prediction 2022

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