Cardano Selling Pressure Surges, Even After SEC Classified it as a Non-Security
Cardano (ADA) has been experiencing consistent downward pressure, with technical indicators signalling increased sell-offs. The on-chain volume of the asset has been declining since March, which is a bearish indication and a cause for concern among investors. In the last 24 hours, ADA saw a small decline of 0.6%, trading at $0.399 during U.S. market hours.
The price has exhibited a pattern of lower highs and lower lows, persistently trading below both the 50-day and 200-day exponential moving averages (EMAs). The primary support level for Cardano is around $0.30, with potential for a significant drop if the market sentiment remains bearish. On the resistance side, immediate resistance is at approximately $0.42, while stronger resistance is evident at $0.50.
Overview of the Santiment Data
According to Santiment data, ADA’s on-chain volume has been on a declining path since March. The on-chain volume over the last 24 hours was slightly over $1.5 billion, a considerable decrease from March’s $11.5 billion. This decrease in trading volume suggests diminishing buying interest at current levels, often an indicator of continued bearish trends.
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The Relative Strength Index (RSI) for ADA currently stands at 45.63, indicating a neutral yet slightly negative sentiment leaning towards the oversold territory. This suggests the potential for further downward movement before any significant reversal occurs. Additionally, the Chaikin Money Flow (CMF) stands at -0.07, reflecting negative money flow and increased selling pressure.
Despite the negative technical outlook, ADA received positive news as the U.S. Securities and Exchange Commission (SEC) declared that it does not consider ADA a security. This reclassification provides regulatory clarity that could positively influence future investor sentiment.
Final Thought and Conclusion
Cardano (ADA) is currently under selling pressure, with key technical indicators pointing towards a bearish trend. Despite the recent positive regulatory news, the asset’s declining on-chain volume and negative market sentiments indicate further downside potential. It is advisable for investors to closely monitor technical indicators and market developments to make informed decisions regarding ADA’s future prospects.
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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
