The crypto markets are creeping up at the moment as the prices of the majority of the tokens, including Bitcoin, Ethereum, Cardano, etc., are struggling to sustain crucial support. In the case of Cardano, the reduced momentum has merely offered any profits to its investors, as the crypto is down by more than 50% since last year. This has made the ‘fundamentally-strong’ crypto among the least-performing cryptos of the year.
Cardano investors should note that the unpleasant behaviour of the crypto is expected to prevail for a long time as the mounting bearish market sentiments may drag the price lower. Although the year 2022 was extremely bearish for the entire crypto space, most of the cryptos were able to recover more than 50% of their losses, while the ADA price maintained a steady descending trend. Moreover, the 2023 bullish push also failed to lift the price above the bearish influence.
Therefore, now it appears that the price may certainly trade below $0.5 until the end of 2023 while refraining from rising above $1 in 2024.
The ADA price has not traded above $0.5 since the beginning of 2023, and the last time it traded above $1 was in April 2022. Presently, Cardano’s market price has dropped close to the $0.25 range, diminishing hopes of a bullish reversal. Besides, even though the price broke above the 50 EMA, extensive selling has kept the prices lower.
However, the RSI divergence suggests a potential sharp change in the ADA’s price. Also, the token has revisited $0.25 multiple times and experienced a notable rebound each time. Hence, a similar action is expected at the moment if the support at $0.25 is held strongly. In case of a bearish reversal, the support levels at $0.22 may be tested, and if they fail to sustain, the next support level at $0.2 could prevent a further drop.
A positive breakout from the range may extend the bullish target beyond $0.3 as the Bollinger bands are getting compressed, which suggests major price action is impending soon.
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