- ADA was down 15.5% from its high for the year.
- The coin’s RSI remained below the neutral 50 mark, which could signal an increase in selling pressure.
gimbal [ADA] started the year on a bullish note, hitting a yearly high of $0.4620 in April. This translated into an 89.1% gain for the coin.
ADA's bull run has been highly correlated to BTC's gains, as its yearly high was recorded when BTC briefly recovered the $30,000 mark.
As BTC experiences a correction and plunges into the $28,000 price zone, ADA has also seen some of its gains wiped out. The coin saw a decline of 15.5% from its high for the year and was trading at $0.3904 at press time.
Read Cardano [ADA] Price Prediction 2023-24
A brief dip or the start of a bearish swing?
Source: TradingView, ADA/USDT
ADA, at press time, was trading in a key price zone. A look at the Visible Range Volume Profile tool over the four hour time frame showed that the high value zone and the low value zone were $0.4200 and $0.3400 respectively.
The price is slightly above a bullish order block with the POC supporting it.
The RSI remained below the neutral 50, which could signal an increase in selling pressure. Both OBV and Volume showed that buying power could decline as they both posted slight declines over the past 72 hours.
A concern for bears on the downtrend is the bullish order block between $0.3900 and $0.3740. The price reacted positively to this bullish block before.
A daily candle close to the bullish order block will see increased bearish momentum with bears targeting the next areas of support at $0.3542 and $0.3140.
On the other hand, the bullish order block could provide a rallying point for the bulls to re-enter the market and push again for $0.4200.
The bears keep control
Source: coinglass
According coin glassthe ADA long/short ratio showed that the short positions had a slight advantage over the daily schedule with 51.84%. This suggested that ADA's long-term outlook still remained bearish.
How much is 1 10 100 ADA worth today?
ADA longs also suffered losses over the past four days. A total of $1.86m in longs was liquidated against only $370.82k in shorts.
Source: coinglass
ADA’s next move will be closely aligned with BTC’s. A recovery of the $30,000 mark by the centerpiece could see ADA post more gains. A drop from $27,000 to $25,000 per BTC could result in more bearish price action for ADA.