Cardano (ADA) Meets Resistance At $0.49 And Falls By 2%

The price of Cardano (ADA) is bearish as it dropped from $0.48 by press time. In the past 24 hours, the token has fallen by about 2% while dropping by over 12% in the past week.

Also, BTC’s drop to the $20,000 level has caused other altcoins to fall as well. On August 26th, the US Fed noted that it would increase interest rates.

This statement caused the crypto market to plummet as several cryptos entered are in red. ADA was progressively increasing in value, but at the time of the writing, the bulls could not keep the momentum going.

Cardano Meets Resistance At $0.49

Although the token had been able to trade close to $0.48, selling pressure made it unable to rise beyond $0.49. As soon as the currency reached the $0.44 price point, the technical view for the coin changed from bullish to bearish.

The initial price of ADA was $0.43. Recently, the coin fell through the support at $0.44 after trading above it for a while. 

The lack of demand for Cardano has caused its price to drop. The market capitalization of all cryptocurrencies as of press time is $1.05 trillion, down 4.4% from the previous day.

ADA/USD Price Chart Source: TradingView

By press time, the price of ADA was about $0.44. The altcoin’s price has fallen precipitously after it retested the $0.48 mark. If the coin’s price falls below its support level of $0.42, it may trade at $0.38 soon.

More Buyers Needed In The Market 

A rise over $0.49 may be possible if the purchasing strength reappears. For ADA, $0.52 is the next level of resistance. Cardano’s transaction volume also decreased, showing that sellers were in control.

As of press time, the price of ADA was below the 20-SMA mark, which suggests low demand from buyers. Furthermore, the RSI was below the half-line by press time. This signifies that sellers are in control of the market.

On the 4-hour chart, the altcoin began to depict a selling trend. The Moving Average Convergence Divergence (MACD) signals the velocity of prices and their reversal. ADA was given a sell signal by MACD after it had a bearish crossing and only produced one red bar.

This may also signify that ADA will depreciate throughout the upcoming trading days. Bollinger bands which show price turbulence and variation, were parallel, which showed that ADA’s value would fluctuate at or near its current level throughout the subsequent trading sessions.