April has been a tough month for Cardano’s price after dropping over 20 per cent. Yesterday’s trading session looked likely to start a new trend. However, today’s session is poised to continue with the long-term bearish move, and the cryptocurrency is already down by more than a percentage point.
The drop in Cardano comes amidst a massive improvement in its services, user base and trading activity. Since March 22, ADA wallets have grown by more than 100,000, bringing the total figure to a staggering 2.268 million wallets. Data collected by Input Output, the group behind the Cardano project, also shows that, since March 11, Cardano has added more than 400 new projects. This brings the total to nearly 900 projects in development.
However, the current drop in Cardano may be an industry-wide problem that has resulted in almost all cryptocurrencies falling in April. There have also been sustained talks of cryptocurrency regulations that are likely to spook investors and drop prices.
Cardano prices are in a long-term downward trend that has resulted in a drop of over 20 per cent in April alone. Looking at the chart below, we see the prices slightly recover in yesterday’s trading session. However, today’s trading session has resumed the bearish move, which has seen the prices trading at $0.88.
Therefore, I expect the prices to continue with the long-term bearish move, as shown by the Williams Alligator and the RSI indicators. There is also a high likelihood that the prices may hit the $0.78 long-term support level. The bearish trend predicted above will be a continuation of a very long-term trend that has seen Cardano prices drop by 70 per cent since September 2021.
However, there is still a small likelihood of the prices reversing before hitting the support level. Based on the chart below, the prices have traded sideways for some time, indicating a trend reversal. If prices trade above $0.9, then my analysis is invalidated. It will also mean a likely push to the upside.
This post was last modified on Apr 26, 2022, 15:01 BST 15:01