• Cardano price has plunged by over 8% falling to 0.9988.
• The trading volume of ADA has surged by over 100%.

The bullish trace in the crypto market vanishes, with the assets slipping back to their former lows. Bitcoin (BTC) trades at the $96K mark and Ethereum (ETH) at $3.3K. Focusing on altcoins, Cardano (ADA) has recorded a loss of over 8.59% in the past 24 hours.

ADA opened the day trading at $1.08 and eventually climbed to the highest trading level at $1.15. Later, the asset reached its lowest price,$0.9904. As of the current time, Cardano trades at $0.9988. 

Notably, the market has witnessed a $10.16 million ADA liquidation during the period. Meanwhile, the daily trading volume of the asset has reached $2.45 billion.

Contrarily, Cardano has gained over 16.80% in the past seven days. ADA jumped from a low of $0.8541 to a mid-week high of $1.10. However, the bullish outlook diminished, and ADA is struggling to overcome the bear trap.

Can ADA Shift to a Bullish Trend?

Looking at the four-hour technical chart of ADA, the daily relative strength index (RSI) is resting at 38. It suggests the asset is nearing oversold territory and a weaker momentum. Moreover, the asset’s daily frame exhibits the short-term 9-day MA below the long-term 21-day MA.

In addition, the Moving Average Convergence Divergence (MACD) line is found beneath the signal line, indicating a bearish sentiment in the asset’s price. This might lead to a potential downtrend or continued selling pressure. 

The Chaikin Money Flow (CMF) indicator, which assesses the capital flow, is settled at -0.20. This value confirms the negative money flow within the market. Traders might consider this as a signal to avoid long positions. Consequently, the daily trading volume of ADA has increased by over 100%. 

The recent price chart of ADA displays the downside momentum, and the price might retrace down to $0.9736. Further losses have the potential to even pull back the price lower toward the $0.9425 mark. 

Assuming ADA breaks the $1.0124 level, the asset could test and rally toward the crucial resistance level at $1.05. If the uptrend sustains, Cardano can push the price to new highs in the upcoming days.

Disclaimer: The opinion expressed in this article is solely the author’s. It does not represent any investment advice. TheNewsCrypto team encourages all to do their own research before investing.

Highlighted Crypto News 

Pierre Poilievre Could Be Canada’s Next Pro-Crypto Prime Minister