While volatility is prevalent for all altcoins at the moment, Cardano is currently dealing with the bearish side of the market, re-testing its monthly support of $0.089 in the charts. While the valuation managed to pull itself back up at press time, the level of uncertainty continues to rise as we are looking forward to an extremely turbulent week.
Cardano 4-hour chart
Source: ADA/USD on Trading View
Breaking out its recent rising wedge pattern, Cardano declined downed to its monthly support at $0.089 in the last week of October. While a quick recovery towards $0.10 was attained, another sell-off period led to another drawdown beyond $0.089. The consistent re-test of price support is ideally a weakening indicator of the price but ADA continues to project bullish confidence.
However, with respect to all market signs, the next 24-48 hours are going to unfold in a sideways manner for ADA. The yellow range can be decisive but the price might consolidate above $0.916.
The strong presence of the 50-Exponential Moving Average did not reduce the bearish thrust on the chart.
Reasoning
Source: Trading View
Market Indicators would allow an ADA optimist to remain positive. Relative Strength Index or RSI is on a bounce back after the recent drop. While MACD suggested a bullish recovery as well. A quick bearish trend was reversed as the blue line exhibited a crossover with the signal line.
Awesome Oscillator or AO is currently neutral with respect to both bullish and bearish momentum but the price is inclining the trend towards a bullish narrative. At the moment, rather than market indicators, external factors play a greater role in dictating the trend as collective momentum is pinned on Bitcoin.
Conclusion
Cardano’s trend can swing either side at the moment. A sideways movement can be expected over the next 24-48 hours but a major trend might unfold as the market attains more activity.