#Cardano
#ADA
#CryptoAnalysis
#CryptoTrading
#Cryptocurrency
#PriceDrop
#BearishTrend
#Crypto2024
Cardano’s (ADA) price underwent a lower high on January 11, triggering an increased pace of decline. The cryptocurrency is nearing a long-term horizontal support zone, which previously acted as resistance. This indicates that sellers are predominating the market. The weekly time frame technical analysis reveals that ADA’s price had been rising briskly since September 2023, reaching a new yearly high of $0.68 in December. However, this attempted breakout above a long-term horizontal resistance area could not be maintained.
The weekly RSI shows a bearish trend, and its reading is often used as a momentum indicator to assess whether a market is overbought or oversold and whether to accumulate or sell an asset. The RSI fell below 70 and is trending downward, nearing the 50 mark. Notably, for analysts, a detailed review of the price activity and the wave count on the daily time frame suggests that the ADA price trend exhibits a bearish trajectory. Using Elliott Wave theory, it appears ADA is in the initial sell-off phase of this bull cycle.
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