By Franklin Smith
- ADA witnesses some relief around the $0.36 mark.
- A dead cat bounce or bulls would propel ADA beyond $0.4?
While publishing this post, Bitcoin headed higher, approaching the resistance level at $19.6K. Bitcoin defended the support at $19K during the weekend. While BTC’s chances of a surge past the $19.6K hurdle prevail, ADA bulls could have faith.
Nevertheless, reversals didn’t seem likely. Recently, analysts highlighted the beneath of $0.4 from a technical standpoint. Cardano’s higher market structure remained bearish, whereas new lows seemed possible for the alt.
Decline Beneath $0.4 Was Threatening, More Downtrends Impending?
The past week saw the Bollinger bands widening as ADA plunged beneath the support level of $0.41. Moreover, the lower band didn’t see a price decline halt within the last few days. Nevertheless, the narrative could have shifted around the $0.36 mark.
Cardano stopped its downside at $0.363. the daily RSI (Relative Strength Index) has dipped to 23.4. This low figure indicated massively oversold situations, and a rebound appeared impending. What can we expect from this bounce?
The 20-period MA had a confluence with the horizontal level of $0.41. The miniature belt at $0.416 – $0.403 confirmed inefficiencies on its price charts, and coming sessions could fill the gap.
Thus, short sellers might watch for entries near that territory. Southward movements would meet the support at $0.336. Meanwhile, bears might book profits around this mark.
Funding Rate Not Massively Bearish
The active addresses index saw a steady decline over the last month. Furthermore, the previous week’s dip beneath the bullish bastion at $0.4 had the funding rate dipping. Futures traders turned highly bearish, executing short positions.
The funding rate stayed above 0% during this publication. That indicated a more neutral stance within the futures markets. Combining the narrative with technical readings, market players can expect a rebound to $0.4. The cryptocurrency market noted upsides within the past day.
The global crypto market capitalization gained more than $0.46% to $932.26 billion. Also, Bitcoin gained 0.91% to change hands at $19,537.49. Nevertheless, the leading crypto remains below the crucial level of $20,000.
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