Cardano bulls appear to be having a hard time holding their price up. Cardano has crashed from the $0.43 level and is now testing support again at the $0.414 level.
The question about ADA now remains: Can the bulls withstand this pressure?
So far, this bearish momentum isn't exclusive to ADA. The cryptocurrency market, in general, is experiencing serious bearish pressure.
Bitcoin and Ether, the two largest cryptocurrencies in the world by market cap, have dropped by 7.54% and 7.81%, respectively, over the last 24 hours. Bitcoin from $20,500 to $18,500 and Ether from $1,400 to $1,268.
The RSI on the daily timeframe originally was neutral but began to show slightly oversold market conditions around September 19th. This indicates that Cardano's price may correct the upside or consolidate for a while.
The MACD shows bearish conditions, as illustrated by the chart above, and the exponential moving averages are currently trading close to the mean, indicating slightly neutral conditions and the possibility of a longer consolidation.
Overall, about 14 to 26 of the major technical indicators support the bears' position over the bulls, with about ten of them sitting on the fence as to the future of ADA.
Cardano is one of the world's biggest proof of stake systems and is now celebrating its fifth birthday. It has already achieved a lot for such a young network in its lifetime.
According to Charles Hoskinson, founder of ADA, the Voltaire era is expected to end by 2023.
The Voltaire era is a step in ADA's roadmap that aims to provide the final pieces required to make the Cardano network an autonomous system.
According to Hoskinson, about 3300 smart contracts have been deployed on the Cardano network after the launch of the Alonzo hard fork in September 2021. He also adds that the new ADA Vasil upgrade that went live this month is one of the most sophisticated updates to the Cardano network.
Hoskinson has also claimed that according to the Gini coefficient, ADA is one of the most distributed cryptocurrencies in the world. An amazing achievement to celebrate Cardano's five years of existence.
Disclaimer: The author's comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)