Cardano (ADA) Falls Below $1, Showing No Signs of Life - Forex News by FX Leaders
Cardano showing bullish pressure this week turning bearish once again

Cardano (ADA) Falls Below $1, Showing No Signs of Life

Posted Tuesday, February 22, 2022 by
Skerdian Meta • 2 min read

Cardano used to be bearish in the previous few months and they still remain so, particularly ADA, which has been declining since September. We saw a bullish reversal in the crypto market during late January after a major retreat in the previous months, but now cryptocurrencies have turned bearish again, as the uncertainty remains high globally, due to the Ukraine situation, as well as central banks tightening up, which is keeping risk assets bearish.

Cardano Daily Chart Analysis – MAs Pushing ADA Below Support

Cardano falls below $1

Cardano’s value has slowly bled out, as this digital coin keeps declining, falling from $3 in September last year to $1 in January this year. The price stopped there for a week and started to reverse higher, as the crypto market was turning bullish, but the climb in ADA/USD was much weaker than in most cryptos, fading at the 50 daily SMA (yellow), which has been providing support together with the 100 SMA (green), as they push ADA down.

On Sunday, the support zone around $1 was finally broken and now Cardano trades below $0.90. This is the bearish zone for this cryptocurrency which is not able to reverse higher. Cardano has seen decent progress after launching the Alonzo upgrade last September, which brought smart contracts to Cardano, with SundaeSwap which is a DEX being the first one to go live.

Cardano Coin ADA Live Chart

ADA/USD

There have been congestion issues but the developing team is increasing the block size by 11% to make the network more scalable, as well as improving the performance of Plutus, the Cardano blockchain’s execution platform for deploying smart contracts. But, despite everything, ADA continues to decline and there’s no real resistance below on the weekly chart, so we can’t make a decision based on this timeframe chart.

Cardano Weekly Chart Analysis – Can the 100 SMA Hold?

This is the last support for ADA on this timeframe

On the weekly chart, we can see that the 20 SMA (gray) turned into support in summer, holding ADA/USD after that crash and sending it surging higher again. Although, since September the decline has been constant without any signs of reversing. The 20 SMA and the 50 SMA (yellow) have been broken, as well as the consolidation zone, but now one last indicator stands in the way. That’s the 100 weekly SMA (green). For now, the decline has stalled at this moving average but let’s see if it will hold.

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