ADA Continues Its Downward Descent

As evidenced by its consistent downward trend, which is evidenced by lower highs and lower lows.

The price of Cardano (ADA) continues to traverse murky waters, as evidenced by its consistent downward trend, which is being driven by lower highs and lower lows.

As the ninth-largest cryptocurrency trades below all major exponential moving averages (EMAs), it signals bearish momentum.

Moreover, the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) are now showing any signs of a bullish divergence.

This usually happens when an asset makes lower lows, but technical indicators, such as RSI and MACD, are making higher lows, which could be a sign that the downward momentum is slowing down and an uptrend may return.

However, bears have taken the driver’s seat in the Cardano network based on these on-chain metrics.

Is there Light at the End of Cardano’s Tunnel?

The pertinent question that arises is whether Cardano will manage to shatter major resistance at the $0.66, $0.68, and $0.70 zones to increase its chances for a bullish reversal.

As renowned market analyst Ali Martinez highlighted, “Cardano was rejected at the top of its descending channel ($0.66), potentially setting up a move toward $0.63, or even $0.54 if pressure persists.”

At the time of writing, ADA was down by 8.4% in the past week to hit $0.65, according to CoinGecko data.

Nevertheless, all hope has not been lost since whales scooped up more than 410 million ADA tokens last month, which might suggest that this was calm before the storm because they expected bullish momentum to build up in the short term.