Cardano price started to rise towards the end of last week and over the weekend. During the day, the asset rose and closed above a crucial resistance level. Only one barrier remains before the ADA price can make significant gains. Despite this optimistic view, Cardano has been hit by a development problem as the Chang Hard Fork has been delayed again by four days. This might have affected investor confidence as ADA has lost its bullish momentum. The asset is trading at $0.3857, down 3.7% in the last 24 hours.
Negative sentiment affects the Cardano price
Since the delay of the Chang hard fork, the ADA price has shown some signs of stagnation, including reduced profitability and reduced network volume.
Data from Santiment shows that the Cardano network’s daily win ratio has fallen to 0.88, the lowest since August 18. This means that for every ADA transaction that closed at a loss, 0.88 closed at a profit, suggesting that most ADA on-chain traders are trading at a loss.
This observation is further supported by the network profit/loss ratio (NPL), which has been continuously declining over the past three days, showing that coins that recently changed addresses were sold at a net loss.
Furthermore, data from Coinglass shows that Cardano’s open interest (OI) and price have fallen by 2.21% and 3.03%, respectively, in the last 24 hours. This data suggests that traders are closing their long positions, possibly at a loss, as confirmed by Santiment’s NPL data. When traders close their long positions, they are most likely opening shorts.
These on-chain metrics suggest that Cardano price could continue to fall over the next 24 hours as market sentiment for the asset has turned bearish. However, if ADA can hold above the current price until the winds die down, investors who are still holding can look forward to a 78% price increase.
ADA Price Analysis: Key Levels to Watch Amid 78% Surge
The Cardano price chart shows a downtrend within a descending channel. The price is currently trading near the upper boundary of this channel, indicating a potential resistance area at around $0.40.
The 50-day EMA (green line) is below the 200-day EMA (black line), reinforcing the bearish trend. However, the price action is currently attempting to stay above the 50-day EMA, indicating a possible momentum shift. ADA price is likely to face resistance around $0.40-$0.42 and the 200-day EMA at $0.4355.
The Chaikin Money Flow (CMF) indicator is positive (0.21), indicating buying pressure. This suggests that accumulation is taking place, which, if sustained, will provide the basis for a possible upside breakout.
If Cardano price closes above $0.4355 (200-day EMA) on heavy volume, it could confirm a longer-term trend reversal, ideal for a long-term entry. Possible targets for long-term gains could be around $0.50, $0.60, and $0.70 if the reversal is confirmed.
If the ADA price fails to hold the 50 EMA support, the middle line of the channel at $0.35 is a key support level. If the price continues to push lower, it will find lower support at the lower boundary of the channel at around $0.30.
Frequently Asked Questions (FAQs)
The delay of the Chang hard fork has created uncertainty among investors, slowed the upward momentum and negatively impacted Cardano’s price and market sentiment.
If Cardano fails to hold the 50 EMA support, the price could drop to the middle line of the channel at $0.35. A further decline could see the price test the lower support at around $0.30 at the lower boundary of the channel.
Traders should keep an eye on key levels, watch for confirmation of a trend reversal, and be aware of the risks if price fails to hold critical support.
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Evans Karanja
Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video games. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes blockchain will revolutionize many industries in the coming years. When he’s not writing, you can find him playing video games or chasing waterfalls.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Conduct market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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