The cryptocurrency market has seen a somewhat stable start to February after a turbulent January, with Bitcoin (BTC) reclaiming the $43,000 mark. However, speculative movements in the futures market continue to influence price volatility. Cardano (ADA) in particular is under scrutiny as investors and analysts examine its performance and future expectations.
Market Resistance and ADA’s Struggle
Cardano’s price has been unable to break through a significant long-term resistance area, marking its sixth unsuccessful attempt since November. This trend indicates a strong selling pressure and a continuation of the negative trend that has been affecting ADA’s price for some time.
Recent price actions show ADA forming a long upper wick, suggesting ongoing short-term profit-taking. The weekly Relative Strength Index (RSI) is trending downwards, and Bitcoin’s price pattern of long red candles after rises points to recurring profit realization.
Daily chart analyses present a bearish outlook for ADA, with technical indicators and the RSI suggesting the possibility of further declines. The ADA price has been consistently falling below a decreasing resistance trend line since mid-December 2023.
External economic factors, such as the Federal Reserve’s cautious stance on rate cuts, add to the negative sentiment. With no expected cuts in the upcoming March or May meetings, ADA’s price has breached the $0.48 support level, potentially leading to further drops to $0.38 and $0.33 if the downtrend continues.
Investors are bracing for increased volatility in light of impending U.S. employment data. If unemployment figures align with forecasts, it could quash hopes for early rate cuts and affect market sentiment for the May meeting. Despite the uncertainty, the unpredictable nature of the crypto market leaves room for unexpected positive shifts.