Cardano Price Forecast: Did Bitcoin’s 8% Increase redeem ADA?

Based on the analysis of Cardano (ADA) and Bitcoin (BTC) on the daily chart, it is evident that both cryptocurrencies are currently experiencing a downtrend. Despite a slight bounce from Wednesday’s lows, market bulls are facing significant resistance in reversing this trend.

Bitcoin saw an 8% increase from its Wednesday lows, triggering a market-wide rally. However, Bitcoin Core developer Matt Corallo expressed concerns about the future of Bitcoin, stating that it seems to be deviating from its original vision as a tool of freedom.

Source: ADA/USDT on TradingView

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On the daily chart, the recent price increase did little to offset the overall losses since March. The Relative Strength Index (RSI) at 46.8 indicated neutral momentum, but the price action showed a clear downtrend with lower highs and lower lows.

The On-Balance Volume (OBV) failed to surpass a local resistance level, indicating strong selling pressure behind ADA. Additionally, the price prediction for Cardano remains bearish due to two imbalances highlighted on the daily timeframes, particularly the lower one at $0.48-$0.5, which could potentially repel bullish attempts in the near future.

Source: Coinalyze

While the Open Interest for Cardano has increased in May, it did not exhibit significant strength during the recent price surge, suggesting that speculators are cautious about going long on ADA.

Read Also: Cardano (ADA) Price Prediction: Can ADA Hit $0.5 or Even $1 This May?

In summary, Cardano’s price prediction remains bearish, with the next target at the 23.6% extension level of $0.3. This expectation is supported by the sustained downtrend of the spot CVD, which underscores the prevailing selling pressure in the market.

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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.