• Cardano [ADA] posted a 38% price drop between 5 June and 10 June due to regulatory issues surrounding major crypto tokens.
• ADA briefly rebounded, but chart indicators suggested the bullish sentiment could be short-lived.
• A strong buying pressure at the $0.2395 level led to a quick rally for ADA, yet bearish momentum persisted with declining OI and negative funding rate.
Cardano’s [ADA] Price Drop
Cardano [ADA] saw its price drop by 38% between 5 June and 10 June due to regulatory issues surrounding major crypto tokens.
Brief Bullish Rebound
A strong buying pressure at the $0.2395 support level led to a quick rally for ADA, allowing it to rebound briefly from the losses suffered earlier. However, chart indicators suggested that this bullish sentiment could be short-lived due to significant bearish momentum on both the daily and four-hour timeframes.
Bearish Momentum Persists
The Relative Strength Index (RSI) declined into the oversold zone on 8 June with no effect from recent gains, signifying intense selling pressure on ADA and hinting at more bearish activity in the future if prices remain low. The On-Balance Volume (OBV) also echoed the price dump with a 940.3 million drop in trading volume which could lead to further declines if sellers remain in control of market sentiment.
Obstacles Ahead
Bulls will need to clear the obstacle at the $0.3035 resistance level before pushing for more leverage in order for any potential upswing in prices to become sustainable. If bears hold sway however, there is potential for ADA’s price decline beyond its current levels of $0.2744 down towards $0.2000 or even $0.1750 support levels respectively .
Conclusion
Altcoins continue to suffer massive losses as regulatory uncertainty remains high around major crypto tokens such as Cardano [ADA]. While there was brief reprieve from its current lows thanks to a strong buying pressure at key support levels, chart indicators showed that this rally may be short-lived as significant bearish momentum persists along with declining OI and negative funding rates – ultimately making it essential for bulls to break through key resistance levels before any sustainable upswings can occur .