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Can Cardano (ADA) Bulls Defend the $0.42 Support Level?

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While Cardano (ADA) holders anticipate a price bounce in the short term, on-chain analysis proves it may take some time.

According to data from CoinMarketCap, ADA’s price has decreased by 32.29% year-to-date (YTD). The last few months have not been better either, as signs emerge that the coming weeks may replicate similar movement.

Cardano Holders Continue Distribution

Leading this bearish outlook is the Mean Coin Age (MCA). As the name implies, the MCA is the average age of all tokens on a blockchain measured by the purchase price.

Significant changes in the average age of tokens spent or bought impact prices. For example, spikes in the coin age indicate notable trading activity. It means that old coins are being moved from wallets where they’ve been stored to more liquid facilities.

On the other hand, a low coin age suggests the accumulation of new coins. In Cardano’s situation, data from Santiment shows that the 90-day MCA has been increasing since June 1.

Cardano old coins movement
Cardano 90-Day Mean Coin Age. Source: Santiment

This increase indicates a rise in selling pressure, which is one reason ADA has become weak. Should the MCA reading continue to increase, ADA’s price may have no option but to decrease further. 

Read more: How to Buy Cardano (ADA) and Everything You Need to Know

Traders Stay Patient

Despite the possible decrease, some traders are bullish on Cardano. The funding rate shows evidence of this.

  • Funding Rate: This is the product of the difference between the contract price and the spot price. The bigger the difference, the higher the rate. A positive reading suggests that the contract price is at a premium to the spot price. 

In this case, long-positioned traders pay a fee to shorts to keep their positions open. Conversely, negative funding implies that shorts pay a fee to longs while the contract price is discounted.

According to Coinglass, ADA’s Funding Rate was positive. This reinforces the assertion that traders put up bullish positions despite the underwhelming performance of the token. 

Cardano traders open long positions
Cardano Funding Rate. Source: Coinglass

In fact, pseudonymous analyst Sssebi, shared his thoughts about Cardano in a post on X. Backing his rationale, the analyst wrote:

“Bullish divergence on the daily ADA/BTC chart. Seems like ADA is hitting the bottom against BTC. We could see a very nice ADA pump soon, also considering that Chang hard fork is just around the corner.” He stated.

ADA Price Prediction: It’s a Breakdown

Meanwhile, BeInCrypto analyzed the cryptocurrency’s potential on the daily chart. According to our analysis, ADA has formed a descending triangle.

  • Descending triangle: This refers to a bearish chart pattern characterized by a descending upper trendline and a flat horizontal trendline at the bottom. In this instance, the lower trendline acts as support.

Generally, this pattern implies that the downtrend may continue, or the token may end up consolidating.

However, other indicators need to confirm this trend. In addition, we noticed that the On Balance Volume (OBV) reading fell.

  • On Balance Volume: This indicator measures positive and negative volume flow to analyze the possible trading direction. An increase in OBV implies buying pressure, while a decrease suggests selling pressure.

As shown below, the OBV on Cardano’s daily chart is down, implying intense selling pressure. If selling pressure increases, the next target for ADA will be $0.40.

Read more: Who Is Charles Hoskinson, the Founder of Cardano?

Cardano (ADA) bearish prediciton
Cardano Daily Price Analysis. Source: TradingView

However, the prediction may be invalidated if bulls decide to defend the support at $0.42. Should this happen, accompanied by an increase in accumulation, ADA may key into the resistance at $0.46.

Another factor that may affect ADA’s price is the Voltaire upgrade. Recently, Cardano’s founder, Charles Hoskinson, confirmed that the upgrade may take place in Q3 while the Chang hard fork is also ready.

Based on the impact of the Alonzo hard form on ADA’s price in 2021, the Voltaire upgrade may set the stage for a bull run. However, it remains uncertain if ADA will follow the 2021 pattern when its price moves from $0.21 to $3.10 within a few months.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Exploring Upward Momentum and Bullish Prospects

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Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he’s trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush’s journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he’s poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush’s unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.



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Should Investors See This as a Buying Chance?

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Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he’s trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush’s journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he’s poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush’s unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.



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Ethereum Reverses Course: Can ETH Bulls Save The Day?

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Ethereum price failed to climb above the $3,520 zone and corrected gains. ETH is now showing bearish signs below the $3,400 support zone.

  • Ethereum started a downside correction after it failed to surpass the $3,520 zone.
  • The price is trading below $3,400 and the 100-hourly Simple Moving Average.
  • There is a key bearish trend line forming with resistance near $3,410 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is now at risk of more downsides below the $3,350 support zone.

Ethereum Price Dips Again

Ethereum price failed to continue higher above the $3,520 and $3,550 resistance levels. ETH formed a top near $3,520 and started a fresh decline like Bitcoin. There was a move below the $3,450 and $3,420 support levels.

The bears pushed the price below the 50% Fib retracement level of the upward wave from the $3,351 swing low to the $3,516 high. It seems like the price trimmed most gains and might continue to move down below the $3,350 support zone.

Ethereum is trading below $3,400 and the 100-hourly Simple Moving Average. It is also below the 76.4% Fib retracement level of the upward wave from the $3,351 swing low to the $3,516 high.

If there is a recovery wave, the price might face resistance near the $3,400 level. There is also a key bearish trend line forming with resistance near $3,410 on the hourly chart of ETH/USD. The first major resistance is near the $3,435 level.

Ethereum Price

The next major hurdle is near the $3,465 level. A close above the $3,465 level might send Ether toward the $3,520 resistance. The next key resistance is near $3,550. An upside break above the $3,550 resistance might send the price higher. Any more gains could send Ether toward the $3,650 resistance zone.

More Losses In ETH?

If Ethereum fails to clear the $3,410 resistance, it could continue to move down. Initial support on the downside is near $3,365. The first major support sits near the $3,350 zone.

A clear move below the $3,350 support might push the price toward $3,250. Any more losses might send the price toward the $3,120 level in the near term.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 zone.

Major Support Level – $3,350

Major Resistance Level – $3,435



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