Bears have been putting pressure on Cardano (ADA) in recent months, causing the crypto fear and greed index to dip into the ‘fear’ zone. Despite the altcoin’s Funding Rates taking a hit, the long/short ratio still offers hope for the bulls.
Cardano has been on a long-term downtrend, with bearish patterns on its daily chart. The recent break in patterns and overall market uncertainties have only accelerated the bearish pressure. However, a potential reversal from the support level around $0.37 could spark some bullish momentum and push the price above the daily EMAs.
Currently, ADA is trading near the $0.37 region, down approximately 2% in the last 24 hours. The altcoin has been struggling to break above its 50-day EMA for nearly three months. The bearish crossover of the 20-day EMA and the 50-day EMA has set the stage for an extended downtrend.
The recent decline below the $0.42 resistance level confirmed the symmetrical triangle breakout, leading to a 15% drop in value in less than three weeks. A close above the immediate support level could help ADA recover its losses, with resistance likely at the 20-day and 50-day EMAs.
The Relative Strength Index (RSI) is nearing oversold levels, suggesting a potential reversal in selling pressure. The MACD and Signal lines have been bearish for over three months, but a bullish crossover could temporarily halt the downward trend.
Despite market uncertainty, ADA’s long/short ratio on Binance stands at 3.7, indicating more long positions than short positions. This could signal a potential reversal from the immediate support level. However, ADA’s 90% 30-day correlation with Bitcoin means monitoring BTC’s movements is crucial for assessing ADA’s near-term potential.