Cardano‘s ADA has been experiencing a downward trend following the much-celebrated milestone it attained on September 2, 2021. The decline has seen the ADA token move below its average value during this period. And over the past couple of days, other EMA indicators have remained strong while ADA continues to face a bearish situation in its value.
Going by the submission of industry experts, the weekly readings of ADA with its bearish trend and technical indicators on the crypto market chart have placed the token on a possible repeat that could see it hover below the trend line.
As of this writing, ADA is trading at $1.13, which is way below its previous price of 3.38% in 24 hours.
However, ADA has been on a downward trend for a long time since recording the highest price point in its history; it lost up to 44% of its market value as it further plunged to hit its low for nine months on January 22. The prolonged trend has caused it to form a bearish outlook while struggling to remain at the $1.2 negative level.
For clarity, it is essential to understand that the $1.2 that ADA has been on is a testing floor for support for more than 11 months in the crypto marketplace. It may not be surprising that the bulls have been trying to find a way to get a grip on the $1.2 in the last couple of weeks.
At present, the $1.23 mark indicates a critical period for investors to key into to halt any further withdrawal of the token from the current level it finds itself. Should the coin get any closer to its support, it would lead to a test of $1.01 before any possible reversal of the current trend.
Again, should the bears shrink down, the bulls are on hand to attempt recovery at the $1.2-mark. The move, however, would be a temporary action until the bulls increase the trend reversal strategy they have.
Trend Justification
The Relative Strength Index (RSI) is on an upward trend; it needs to surpass its midline in the chart to achieve any bullish move. Now is the time for traders to look out for any interval outside the existing range to make a careful trading decision.
Moreover, the readings point to a directional trend at the time of writing, showing a minor improvement to an otherwise challenging curve for the ADA token.
The indicators may have shown mixed signs of a trend reversal, which does not mean that the bulls have what it takes to prevent another fall below the support mark. Admittedly, there might be a possible retest between the $1.01 and $0.8-point range before any strong reversal becomes a surprise for many optimistic investors.
Notwithstanding, investors should take a close and careful look at the trend, especially in the movement of Bitcoin, because it shares a similarity with Cardano’s ADA, considering the 76% 30-day correlation between them in the market.
