Cardano (ADA/USD) Selling Bias Continues – Could it Plunge to 1.1515?
The ADA/USD coin pair has failed to stop its previous declining streak and remained depressed well below the $1.19 level. The price of Cardano has been consolidating between resistance and support levels of $1.27 and $1.15. The coin was priced at $1.19, with a 24-hour trading volume of $1,299,703,855. Cardano has dropped by 0.87% in the past twenty-four hours. Initially, it grew around 2.9% over the past 48 hours, but a slight decline in prices caused the coin to rest below the crucial $1.18 support level.
The global crypto market cap was at $1.36 Trillion, with a 3.0% rise over the last day. With the broader crypto market still showing significant signs of weakness, some altcoins have seen improvement. However, ADA showed a continued reduction in capital inflows on the technical analysis chart. The sharp declines in the Cardano price could be associated with multiple reasons, be it a stronger US dollar or the unstable market, and all these factors have weakened the price of the ADA.
On the USD front, on Monday, the broad-based US dollar succeeded in extending its early-day bullish rally and remained well bid near its highest levels in months, as the constant rise in the numbers of new coronavirus cases has made investors worry about global recovery, causing them to put their money into safe havens. The upticks in the US dollar were seen as one of the key factors that kept the ADA/USD coin under pressure. Meanwhile, Cardano inches closer to launching smart contracts with a new testnet.
The former testnet, by the name of Alonzo Blue, did offer some smart contract features, but these features were only open to a restricted number of insiders. However, the new upgrade will allow approximately 500 stake pool operators, validators and developers to test these features in the future. But this positive development has failed to have any meaningful impact on the Cardano prices, at least for now.
Cardano (ADA/USD) – Technical Outlook
On the technical side, the ADA/USD coin is heading lower, towards the support level of 1.1514. Cardano is gaining support at 1.1514, extended by a double bottom pattern. A breakout at this level could drive the selling trend until the 1.0819 level. The leading indicators, like the MACD and the RSI, suggest a selling bias; therefore, the odds of a continued selling trend remain pretty solid.
Traders may have a chance to capture a short sell position, however, now is not the time. We need to wait for a 1.1510 breakout. Perhaps, we could put a sell stop below the 1.1485 level, to target the 1.0820 level. Good luck!