- Cardano (ADA) is encountering bearish pressures as it struggles to rise above significant resistance levels.
- Technical indicators are pointing towards a potential downside continuation for ADA.
- There has been a notable increase in active addresses and the adoption of the new node version within the Cardano network.
Cardano (ADA) price analysis indicates potential downside as bearish pressures persist.
ADA Price Under Bearish Pressure Amid Stagnation
Cardano (ADA) has seen its price stagnate below its 50-day Exponential Moving Average (EMA), suggesting underlying weakness. Despite the broader crypto market experiencing a minor uptick, ADA remains constrained by critical resistance levels. The current bearish sentiment is mirrored in the technical indicators, with the cryptocurrency hovering close to the oversold territory.
Nodes Upgrade & Network Activity Surge
A significant 79% of Cardano nodes have upgraded to the latest v9.1.0. Additionally, the network has seen a 20.15% increase in active addresses over the past week. While these developments underline the robustness and ongoing improvements within the Cardano network, they haven’t yet translated into price growth for ADA.
Cardano Price Analysis: Technical Indicators Signal Further Downside
According to recent technical analysis, ADA has broken down from a rising wedge pattern, a bearish signal that could suggest further declines. The measured move from this pattern indicates a potential drop to around $0.280, especially given that ADA struggles to move above the 50-day and 200-day EMAs, currently situated at $0.345 and $0.378, respectively.
Bearish Trends & Support Levels
Further reinforcing the bearish outlook, ADA is trading below its 50-day EMA and 200-day EMA, with the 50-day EMA below the 200-day EMA—a classic bearish indicator. Key support levels are identified around $0.28 and $0.25, former consolidation zones that could provide a floor for the current downtrend.
Conclusion
Cardano (ADA) is facing significant bearish pressures as it struggles to break past key resistance levels. The network improvements and surge in active addresses underscore a potentially bright future, but the current technical analysis suggests a bearish short-term outlook. Investors should watch for ADA’s ability to maintain support levels and any shifts in broader market sentiment for potential bullish reversals.
