Although much of the crypto market has been generating interesting gains in recent hours, some have not managed to follow this trend, among those is Cardano (ADA) which is trading at a price of $ 1.07, accumulating a loss of 4, 94% in the last 24 hours.
The behavior of this crypto seems unusual, since a hard fork was recently held in order to implement the Mary update to its network, which should be generating positivism among users.
It seems that the previous big raise already discounted most of the gains that could be obtained when the network is improved. After such an amazing rally the bulls are already somewhat exhausted.
In any case, it is clear that those who have general control are the buyers, so sooner rather than later they should pick up the trend.
To know more precisely the behavior of ADA and thus forecast its future, here is a technical analysis of it.
Although the strength of the decline in recent days has not been really relevant, and there are more and more signs of bearish exhaustion, the bulls have not yet managed to regain control.
Yesterday with the general rally in the crypto market, ADA took advantage of the sentiment. However, quickly most of the gains were wiped out, which makes us think that we could see some more decline in the next few hours.
Even when we are observing this negative behavior, it is not really worrying, since it is a simple medium-term correction, healthy as well.
When we look at the behavior of the last few months, we notice that obviously the predominant force is bullish.
Cardano price may be about to finish the corrective process at 38.20% Fibonacci. If true, a new boost could take us to $ 1.84 with ease.
It is time to wait for signs of reversal in the short term to confirm that the setback will not be deeper.
ADA is about to find an important area of demand
Despite the fact that we are seeing a clear bearish direction in the very short term, this inclination could be quickly overshadowed when the demand that accompanies the larger trend takes over.
Right now we see a scenario that tells us that we could see some more losses in the next few hours, but, after that fall, the price of Cardano will find the support zone around $ 0.85, where 2 important impulses were started previously. .
If the trend does that immediate support is respected, we should soon see a new rise in search of all-time highs (most likely scenario). A confirmation that this will be the case is the break of the resistance at $ 1.1972.
In the event that the support at $ 0.85 is breached, we will see a deeper correction in the medium term, which, knowing the general market outlook, does not seem too likely.
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