- Cardano was down by more than 7% in the last seven days.
- Market indicators and sentiments remained bearish on the token.
Cardano [ADA] shed a lot of its value last week as its price chart was painted red. In fact, if the latest data is to be considered, investors might have to wait for a few more weeks before they witness ADA’s price skyrocket once again.
To better assess the current situation, AMBCrypto took a closer look at Cardano’s state.
What history suggests about Cardano’s price action
Over the last week, ADA investors have struggled as prices dropped. According to CoinMarketCap, Cardano was down by more than 7% in the last seven days.
At the time of writing, it was trading at $0.5063 with a market capitalization of over $17.9 billion.
Thanks to the bearish price action, ADA’s social volume dropped after spiking on the 16th of January. Additionally, bearish sentiment continued to remain dominant in the market, as evident from the sharp drop in its weighted sentiment.
Source: Santiment
This happened at a time when ADA outshone others in terms of development activity. AMBCrypto previously reported that over the past few weeks, ADA has seen a sharp increase in development activity.
Amidst this, Ali, a popular crypto analyst, posted a tweet highlighting an interesting development.
#Cardano‘s current consolidation phase mirrors its late 2020 behavior. If history repeats itself, we might see $ADA resuming its upward trend around April. This pattern continuation could potentially lead to an upswing toward $0.80, a brief correction to $0.60, then $7! pic.twitter.com/RuRA2EDMNP
— Ali (@ali_charts) January 19, 2024
As per the tweet, ADA’s consolidation phase mirrors its late 2020 behavior. If past events are any indication, then ADA could begin to rise again in April.
While this suggested that investors should remain patient for ADA’s next bull rally, AMBCrypto took a look at other metrics to see whether anything was in store for the near term.
More slow-moving days ahead
At first glance, we found that ADA’s price did increase by nearly 2% in the last 24 hours. However, the trend might not last as most market indicators remained bearish.
For example, both ADA’s Relative Strength Index (RSI) and Chaikin Money Flow (CMF) took a sideways path near their respective neutral zones. Its MACD also displayed a bearish advantage, indicating a possible end to ADA’s price uptick.
Source: TradingView
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Nonetheless, let’s consider an utopian scenario where ADA manages to push its price up. Hence, AMBCrypto checked its liquidation levels to find the possible resistance zones ahead.
Going northward, Cardano might face a strong resistance level near the $0.55 mark, as previously when its price touched that level, it witnessed massive liquidation.
Source: Hyblock Capital