ADA Technical Analysis – March 2022
Ever since it reached its all-time high back in September of 2021 at around $3, the price of Cardano (ADA) has been bearish. It declined to as low as $1.18 in December, but it managed to end the year at around $1.60. Nonetheless, the price of ADA maintained its bearish nature even in the new year.
In the first few days of 2022, ADA declined by more than 30%. After finding support at $1.07, the price had a bullish surge of more than 50%, but it failed to break the upper trendline laying at $1.64. Despite that, ADA had a higher high, hinting at a potential reversal. However, that was not the case as the price imminently dropped by more than 40% in the following days.
In February, ADA initially increased by 25%, but it faced resistance at $1.26. The price continued its bearish momentum throughout the month after that, dropping as low as $0.75. This price is the lowest ADA has been in approximately a year, making it relatively difficult for ADA HODLers.
Worth noting is the descending wedge pattern created by the price movement of the last few months. This could eventually see ADA have a breakout as the wedge gets narrower.
Key Structures
Support
- $0.75
Resistance
- $1
Indicators
Moving Average
Both the 50-day and the 20-day MA lines are currently above the price of ADA, indicating that the price of Cardano may keep declining in the coming weeks, or even months. ADA The trend may remain bearish a little longer for ADA.
The 9-day EMA is also above the price, indicating that the trend is bearish in the short run as well. This could see the EMA line act as resistance as the price of ADA may keep declining in the coming days.
Relative Strength Index
The RSI of a 1-day chart hit at 30 when ADA found support at $0.75, indicating that it became oversold. After a set of corrections and dips, the RSI is still bearish and below 50, but it gives ADA plenty of room to try and recover.
MACD
The MACD line of a 1-day chart is slightly below the signal line and below the baseline. This means that the momentum is still bearish for ADA. Nonetheless, the lines are currently converging, which could see ADA have a shift in momentum in the short run.
Fibonacci
The Fibonacci retracement levels suggest that the price of ADA went back to the 50% level, which was then followed by another drop in the price. If this level proves true, it could see ADA go further down in the coming weeks.
Price Prediction ADA – March 2022
Based on this technical analysis on Cardano (ADA), the price of ADA may keep declining in the coming weeks. While the price is currently correcting and slightly bullish in the recent 1-day chart candlesticks, ADA is still bearish. Hence, after this recovery phase that could stop at $1, ADA may keep declining. If our projected support structure breaks, then we could see ADA approach $0.50 in the coming weeks. Of course, the price is largely affected by other market factors, such as the overall trend of the market and the price movement of Bitcoin.
Latest News for ADA – Affecting Price
There’s a lot of FUD recently for the Cardano network and its community. In a recent book from Laura Shin named The Cryptopians, she portrays the likes of Vitalik Buterin, Charles Hoskinson, and many more that were involved with the foundation of Ethereum as people of poor integrity. She emphasizes one feature that all these people have in common: greed.
Hoskinson did not hesitate to reply to her critics, where he jokingly described Laura’s book as “a great work of fiction.” Immediately after that, Laura Shin took the time to publicly expose Charles Hoskinson as someone who had dropped out of his undergraduate program. To put this into context, plenty of people believed in the Cardano project because of the credibility that someone who was eventually going to have a Ph.D. such as Hoskinson would have.
Unfortunately, that turns out to be false, leaving plenty of people in the Cardano community shocked and in disbelief.
Hi Charles, speaking of fiction, do you want to address the discrepancies between your claims of dropping out of a PhD program and the schools’ assertions that you were enrolled as an undergrad? pic.twitter.com/gBULGEa6KK
— Laura Shin (@laurashin) March 6, 2022
Of course, some people are still believing Hoskinson’s side of the story and are claiming that Shin is just trying to do her best as a journalist. Some others are claiming that she is simply doing this for attention. However, Shin and her team emphasized that they have all the facts for proving everything portrayed in the book, including the people involved in the infamous Ethereum DAO hack of 2016.
Other than that, conflicts between Ukraine and Russia continue to affect the crypto market. Cardano could maintain its bearish nature, as fundamentals suggest that the project may lose trust from many of its long-lasting community members.