Cardano Faces Strong Bearish Signs despite Surging Demand

Cardano Faces Strong Bearish Signs despite Surging Demand

Technical analysis of Cardano shows that the cryptocurrency just may continue downwards after recovering for a while yesterday.

ADA Price Analysis

Cardano has been in a slightly bearish range since September 11th but managed to find support around the $0.462 mark.

The retracement move of ADA after finding support lasted only a day before selling pressure appeared again. Prices are now consolidating around $0.46 at the writing time, after breaking below the $0.42 support.

Cardano has declined 2.43% over the last 24 hours, with a decrease in market cap of more than 2.3%. The daily trading volume is also down by 3.4% today.

Volatility on ADA has increased as well over the last week.

If prices manage to move upwards again, the next resistance would be around the $0.52 level, representing resistance for its price function.

The RSI on Cardano's daily timeframe is at 46.89, indicating neutral but slightly oversold conditions. This means that ADA may be in a range for a while, over the long term, as prices can go either way.

Chart of the ADA/USDT pair, showing average price conditions | Source: <a href=""><u></u></a>
Chart of the ADA/USDT pair, showing average price conditions | Source:

If prices move to the upside, Cardano can test the $0.52 resistance, decline further down, and test the $0.42 support.

Cardano and Georgia Partnership

The Cardano foundation recently announced a partnership with the national wine agency of Georgia.

This new partnership aims to use Cardano's blockchain technology to ensure that the quality of Georgian wine remains at high standards.

According to the announcement, the Cardano foundation means to develop a cheap and effective certification and traceability system in partnership with the Swiss goods and packaging platform, ScanTrust.

The Cardano foundation's partnership with Georgia will start with a hundred thousand bottles of wine, filled and bottled in Bolnisi, a city in the Kvemo Kartli region, next spring. With this pilot move, consumers can check the authenticity of bottles with the help of a unique QR code.

The partnership will involve the Cardano foundation, the national wine agency of Georgia, the Bolnisi winemakers association, and Scan trust.

According to Mel McCann, Cardano's vice president of engineering, this Cardano collaboration will foster the development of solutions fie companies and all kinds of systems.

The four partners will collectively create a flexible, open, and traceable solution to enhance Georgia's reputation as a premier winemaker.

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)

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