Cardano (ADA) price experienced a protracted run along a falling angle formed on June 27, when the price was $0.52. Since then, ADA has retreated gradually to find support at $0.44.
Nonetheless, ADA may be slowly returning to the green zone, as its price increased throughout the weekend’s session after plummeting to a low of $0.43 on Friday.
Cardano is a decentralized proof-of-stake blockchain platform of the third generation aiming to be a more effective option to proof-of-work networks.
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The token is at a crossroads at this point, and the price might move in any direction. If the bulls can summon enough strength, an upswing to $0.64 is possible, but the support zone around $0.42 to $0.44 might potentially provide some more push for the coin.
In the next days, the overall trend will likely benefit the sellers. Unless buyers intervene at the immediate support level, ADA could experience a lengthy dip prior to a robust recovery.
Bear Market Pushes ADA To 7-Day Weakness
As of this writing, ADA is trading at $0.4507, down 9.5% in the last seven days, data from Coingecko show, Sunday.
The broader crypto market continues to exhibit bearish indicators, headed by Bitcoin’s inability to surpass the $20,000 threshold. BTC, the most sought-after cryptocurrency, is currently trading at $19,105, down 11.2% in the past week, according to Coingecko statistics.
ADA total market cap at $15.6 billion on the weekend chart | Source: TradingView.com
In contrast, Ethereum declined by more over 2 percent, remaining just above the $1,000 threshold. Ripple and Dogecoin remained unchanged at $0.44 and $0.05 respectively, while Solana declined 2% to $33.04. Litecoin decreased by 2% to $50.57, whereas Polkadot fell to $6.70.
ADA ranks eighth on CoinMarketCap’s chart of the largest cryptocurrencies by market capitalization. The coin saw a 24-hour decline of 3.80%, bringing its price to $0.4514. Consequently, its entire market capitalization is $15.37 billion.
The Bulls Have Their Hands Full To Lift Cardano
If the bulls are able to retake the 21-day simple moving average, which is now located at $0.50, the bearish downtrend could be invalidated early on. If the bulls can reclaim this level, they may be able to advance to $1.20, a 170 percent increase from the current Cardano price.
As evidenced by the rising relative strength index (RSI) score of 41.40, ADA is likely to advance at the present time.
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If buyers can consolidate above the current trend over the next 24 to 48 hours, ADA will be aiming for the critical 50-day exponential moving average (EMA).
For a trend reversal to materialize, ADA must close above the present pattern’s upper limit within the following 24 hours. In contrast, a decline to $0.42 might undercut the optimistic rationale.
Featured image from Cryptoknowmics, chart from TradingView.com