It had been several days since the trading price of Cardano has been stuck in a bearish zone. The investors are unsure where the trend would go and therefore, they are making no investments.
Cardano is in the Bearish Zone
A few weeks back, the trading price of Cardano (ADA) started to rise with a strong bullish rally back up the move. However, the bullish run did not last for long as the bears were determined to show off their power.
The bears wanted to prove their might and power, and for this purpose, they started selling ADA on a higher level. They sold more ADA than the bulls were accumulating, which caused the price of ADA to crash.
The selling spree from the bears’ end gained momentum on October 18 after they had taken a two-day break from selling. This is when the trading price of ADA started to decline and the trend continues.
Although the bulls have made several attempts, they have not been able to push ADA’s price higher. It is the bears who have control over the situation and they may continue selling to keep the bulls from buying.
Positive Expectations for ADA
Even now, sharp selling can be witnessed from the sellers’ end. So far, the selling spree has entered an oversold zone. It is an indication that the bears may lose their selling power and exhaust their resources.
Due to the past two-week selling spree, the RSI for ADA has moved to the lower negative zone. However, the overselling would offer bulls the opportunity to launch a strong buying attack against the sellers.
With the sellers losing their selling power, the bulls would have the opportunity to buy ADA on a large scale. This would eventually help push ADA’s price higher.
As the momentum keeps on building, the trading price of ADA may rise to a high of $0.36. If the situation keeps getting better, then the trading price of ADA may rise all the way up to a high of $0.38.
Although the bears may show great resistance the strong buying of the bulls may allow them to keep pushing harder. This would eventually help push ADA’s price to a high of $0.40.
Selling Power to Pull ADA below $0.30
If the situation keeps working in favor of the bears, then the trading price of ADA may fall to a lower level.
If the confidence level of the bears keeps rising, then the trading price of ADA may fall deeper. With strong selling sentiments, the trading price of ADA may fall to a low of $0.30, and then below that level.