Cardano Price Prediction: ADA May Be On The Verge Of Bearish Correction
Daily Cardano ADA Technical Analysis
- Cardano price has flashed the sell signal in the TD sequential indicator.
- The RSI has dipped into the overbought zone.
Since the beginning of February, the Cardano price has jumped from $0.343 to $0.66, nearly doubling itself in valuation. However, it looks like the party may soon be over for ADA as multiple price charts have started flashing the sell signal.
Cardano Price Has Flashed Multiple Sell Signals
After crossing over the $0.65 psychological barrier, the Cardano price has been making a run towards the $0.70-line. However, specific indicators show that ADA may soon face bearish correction.
- The TD sequential indicator has flashed a sell signal in the daily chart in the form of a green-nine candlestick.
- The relative strength index (RSI) has dipped into the overbought zone, which shows that the underlying asset is overpriced.
Image: ADA/USD daily
If this correction does happen, the Cardano price has dipped to the $0.360 support barrier. Previously, at this level, 27,500 addresses had purchased a little less than 2.75 billion ADA tokens. This level is strong enough to absorb a tremendous amount of selling pressure.
Plus, there is another negative sign for Cardano price. It looks like the number of addresses entering ADA had reduced from 43,280 to 41,300 over the last 24 hours. This is a negative sign since it shows that the network is weakening. However, this is probably a temporary correction before it makes another rise towards $0.70.
Cardano Price Is Expected To Reach These Levels
If the Cardano price will go through a temporary correction, ADA is likely going to fall to the $0.60 support barrier. This barrier is robust enough to prevent a drop in valuation.