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Cardano (ADA) Price in Limbo: Bull Run on Hold or Bearish Reversal?

Cardano ADA Price Slumps: Is the Bull Run Over?
Cardano ADA Price Slumps: Is the Bull Run Over?

Cardano’s price has been on a rollercoaster ride lately, leaving investors wondering if the recent surge is over. In this video, JB dives deep into the technical analysis of ADA, exploring weekly, daily, and 4-hour charts to provide insights into potential future movements.

Weekly Chart Hints at Bearish Downturn

On the weekly timeframe, ADA has experienced a significant 22% drop, plummeting from a high of 81 cents to its current level of 65.3 cents. This decline coincides with a test of key Fibonacci retracement levels, often seen as potential support or resistance zones.

Furthermore, technical indicators like the Stochastic RSI are flashing bearish signals, suggesting a potential continuation of the downtrend. However, it’s crucial to note that a confirmed bearish reversal on the weekly timeframe hasn’t occurred yet.

Daily Timeframe Offers Glimmer of Hope

Shifting to the daily chart, there are some signs of a potential short-term bounce. The price has found support at the 50-day EMA (Exponential Moving Average) and the daily equilibrium level. Additionally, the daily Stochastic indicator is currently oversold, which often precedes a relief rally. This suggests a potential upside retracement with targets potentially ranging between 71.27 and 78.5 cents.

4-Hour Chart Paints a Bleaker Picture

The 4-hour chart reveals a more concerning outlook. The price initially tested the equilibrium zone but failed to hold above it, indicating further downside pressure. The Stochastic momentum is also crossing its average, which often foreshadows a continuation of the downward movement. Initial support on the 4-hour timeframe sits at 62.1 cents, with further potential targets between 61.3 and 58.8 cents.

Volume Analysis Adds Context

By analyzing volume alongside price movements, JB can identify potential support and resistance levels. Interestingly, recent price fluctuations seem to correlate with areas of higher trading volume. However, the negative money flow and other bearish signals on the volume analysis suggest continued downward pressure on the price.

Overall, Cardano’s price outlook remains uncertain. While a short-term relief rally is possible on the daily timeframe, the broader trend seems to be leaning towards a continuation of the downtrend. The local top might have been reached at 81 cents, with potential downside targets identified on various timeframes.

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