ADA price analysis: Cardano is continuing the downtrend

Cardano is a strong competitor of Ethereum with more flexibility, sustainability, and scalability for running smart contracts for decentralized finance apps, gaming, tokens, and more.

At the time of writing this post, ADA/USD is trading around $0.3, which broke the previous support level of $0.45, and is now forming a bearish pattern on the price chart. It has been in a downtrend from the beginning of this year, and it is continuing the momentum after facing resistance around $0.43 in October.

ADA analysis

On the daily chart, Bollinger Bands lack volatility, and candlesticks are forming around the baseline along with neutral MACD and RSI, suggesting consolidation for the next few weeks. The chart has been in a downtrend, so we do not think it is an ideal time to invest in ADA with a target and stop loss in the short term.

Cardano Cardano offers similar features to Ethereum, so both are running on proof of stake consensus (Ethereum after Merge upgrade). It is tough competition between them, and hard to predict the future of these two cryptocurrencies.

Ethereum is the second largest cryptocurrency based on the market cap so many investors might prefer Ethereum over Cardano. Indeed, Cardano is also a fundamentally strong cryptocurrency, so that the ADA price will surge in the next few years. According to the Cardano price predictions, it is ideal for accumulating these coins at a lower price and reaping the benefits in the next five years.

In this uncertain time and during this recession, investing in such down-trending cryptocurrencies is not recommended for the long term, so you have to keep a closer eye on the crypto portfolio and invest an amount when it forms a bottom for the long term.

Overall, other technical indicators are bearish, so wait for the ideal opportunity to invest more in Cardano and follow our website to get the latest update on trending cryptocurrencies.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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