Spot Bitcoin ETFs were approved on Wednesday, and yesterday the price of almost all cryptocurrencies rose quite decently. Nevertheless, we must not neglect long-term signals. For example, Cardano lost 15% of its price in the week before this rally, and the signs are that the decline is not over yet.
Bears were able to push ADA down to key support around 46 cents. The price did bounce back, but it looked like further testing of this support before the ETF was approved. Thanks to yesterday’s euphoria, the price rose up to 60 cents, where there is historical resistance and the 161.80% Fibonacci retracement level. The next key resistance is around 65 cents.
ardano: Indicators suggest bearish sentiment
Looking at the Relative Strength Index (RSI) and MACD from a three-day perspective, a downtrend can also be noticed. A further decline can be expected if the resistance at 60 cents is not subdued and the price rebounds.
In addition, a bearish crossover can be noticed on the MACD . This is an important signal that often heralds a decline to lower levels. Another solid support for Cardano could be a price up to around 40 cents.
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Conclusion
Of course, I don’t know how long the euphoria from ETF approval will last and how long altcoins will ride this wave. As recently as last September, the price of ADA was hovering around 24 cents, and $3.09 (all-time high, ATH) in September 2021 could only be dreamed of. The long-term trend of Cardana seems to be rather bearish, so we will see if the current wave of optimism can turn the direction.