Technical improvement announcements may have affected ADA prices positively in the short timeframes. The latest proposal to increase Cardano mainnet’s block size saw price charts responding with upticks. Moreover, Santiment data show ADA hovering within an area that upside rallies have generated for the alt. Is history about to repeat itself?
Cardano – 1-Day Timeframe
The altcoin developed a plunging wedge formation back in November and December. Cardano plummeted below several vital support floors between November and March. The only successful floor that bulls defended stood at $0.78, but bears may seize the level again.
Cardano could not climb past the supply zone at $1.2 since the wedge setup breakout failed to overturn the long-term bias in the bulls’ favor. Now, are whales accumulating the alternative token? Or was the March uptrend doomed to fade near $1.2 before ADA resumes its former downtrends? Indicators display bearishness for the Ethereum killer.
According to the charts, the Bollinger bands remained wide, suggesting volatility within the past couple of weeks. Furthermore, the price stayed under the 20-day MA and showed that a $0.9 revisit within the coming days could mean a selling opportunity.
Reasoning
Cardano witnessed a bullish divergence several days near the support at $0.78 plus a bearish divergence at $1.2 within the previous two months. That showed the end of the past bearish ad bullish biases, respectively. While publishing this blog, the momentum reflected massive bearishness.
The Awesome Oscillator (AO) has formed red histogram bars within the last three weeks, denoting surging downside pressure. Though the on-balance volume increased in mid-March, the bounce was not strong. That highlighted weak demand.
While publishing this content, Cardano traded near $0.8374, gaining 0.06% within the past 24 hours. Meanwhile, its correlation with BTC means ADA will depend on Bitcoin for its up-and-coming directional trends. The world’s largest crypto traded with a 1.17% 24hr uptick near $39,296.86 at this publication (Coinmarketcap data).
Final Thought
Increasing bearish momentum and weak demand could have Cardano moving to $0.78 again, though a bounce to the $0.9 mark in the coming few days remained likely. Nevertheless, the alt was yet to witness a trend shift sign. There weren’t magnified demand or divergences behind the alt.
