Cardano Price Analysis: ADA Facing Downtrend, But These Signs Are Promising in The Mid-term

Cardano, one of the altcoins with exceptional performance in 2021, has now dropped 75 percent from its ATH. Recently, ADA lost the critical support level at $1. The price is now declining, forming a falling wedge, accompanied by 100-day MA (marked by a white line on the daily chart).

The Daily Chart (USD Pair)

Technical analysis by Grizzly

The OBV indicator is also dropping below its downtrend line. Assessing these bearish signals, breaking above the red zone (static resistance) is the first condition for shifting back to a bullish trend. The current key support/resistance levels are shown in the chart below.

Key support levels: $0.73 and $0.45

Key resistance levels: $1 and $1.2

The Daily Chart (BTC Pair)

The ADA price is at the intersection of dynamic and static support against BTC (ADA/BTC). The majority of technical speculators expect a rebound due to the divergence and higher lows formed by the Stochastic RSI oscillator.

In general, according to the recent interviews of the project founder and fundamental news such as the increase of the TVL, the growth of long-term holders, staking value, and smart contracts on Cardano, positive price movements are possible in the mid to long term. The overall crypto sentiment might cause extra volatility in ADA in the short term.

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