Despite repeated breakout attempts, the popular Altcoin Cardano (ADA) has struggled to violate a resistance level of $0.926 since mid-August.
Each gathering towards the mark is increasing sales pressure and waning tokens. The latest denial occurred on September 14th, when the ADA tested the barrier again but was unable to hold on momentum. That set-off caused a new downward movement, and the token has since been reduced by 5%.
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Ada’s bullish structure collapses
Measurements from technical indicators observed on the daily chart suggest a possible extension of ADA prices. For example, the moving average convergence divergence (MACD) of a coin forms a bearish crossover, suggesting deep losses in the short term.
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MACD indicators identify trends and momentum in price movement of assets and help traders find potential buys or sales through a crossover between the MACD and signal lines. When the asset’s MACD line (blue) falls below the signal line (orange), it forms a bearish crossover, indicating a breakdown of the market’s bullish structure.
ADA’s looming bearish crossover at MACD suggests that bullish momentum is steadily weakening, and the coin is vulnerable to sharper decreasing when the seller remains in control.
Furthermore, the parabolic stop and inverse (SAR) of the ADA turned the position upside down, and the dots formed dynamic resistance beyond the price. In the context, at the time of this writing, the SAR is placed at $0.952 and the ADA will trade for $0.869.
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Parabolic SAR indicators track potential trend reversals by placing dots above or below the asset price. If dots outweigh the price action, it indicates that bear pressure is tightly controlled and recovery attempts may continue to fail.
This exacerbates the bearish pressure on the ADA, suggesting that a deeper reduction could be on the horizon unless the Bulls recover the ground immediately.
Will the bear drag it to $0.677, or will the Bulls lift it to $1.079?
When the main momentum indicators match against the Bulls, the ADA appears to be leaning more and more towards the further downside. In this scenario, the price drop could be extended and drop to $0.802. If the Bulls don’t follow this support floor, the dip could reach $0.677.
Conversely, if bullish momentum regains strength and the ADA succeeds in a $0.926 barrier in retest, it can pave the way for a rally to its last seen level in March, $1.079.
