Flow

Cardano

bullish

Reversal

<ul class="wp-block-list">
 <li>Cardano ($ADA) surges 1.41% to $1.08 with strong market activity.</li>
 <li>A drop below $1.03 could lead to a 20% correction toward $0.88.</li>
</ul>
Cardano ($ADA) is trading at $1.08, marking a daily surge of 1.41%. Its market cap stands at $38.06 billion, with a 24-hour<a href="https://coinmarketcap.com/currencies/cardano/" rel="noopener noreferrer nofollow"> trading</a> volume of $3.94 billion, reflecting a sharp 170.28% increase. The volume-to-market cap ratio of 10.32% indicates heightened trading interest, signalling strong market activity.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="447" src="https://thenewscrypto.com/wp-content/uploads/2024/12/ADAUSDT_2024-12-02_18-03-10-1024x447.png" alt="" class="wp-image-116377" srcset="https://thenewscrypto.com/wp-content/uploads/2024/12/ADAUSDT_2024-12-02_18-03-10-1024x447.png 1024w, https://thenewscrypto.com/wp-content/uploads/2024/12/ADAUSDT_2024-12-02_18-03-10-300x131.png 300w, https://thenewscrypto.com/wp-content/uploads/2024/12/ADAUSDT_2024-12-02_18-03-10-768x335.png 768w, https://thenewscrypto.com/wp-content/uploads/2024/12/ADAUSDT_2024-12-02_18-03-10-1536x671.png 1536w, https://thenewscrypto.com/wp-content/uploads/2024/12/ADAUSDT_2024-12-02_18-03-10.png 1814w" sizes="auto, (max-width: 1024px) 100vw, 1024px">
</figure>
Technically, $ADA has faced resistance at $1.15, failing to move above $1.16. On the downside, critical support lies at $1.10 and $1.03. A close below $1.10 could signal a bearish trend shift, while a drop under $1.03 would likely confirm a move toward $0.88. This could lead to a potential 20% <a href="https://x.com/ali_charts/status/1863502889068454374" rel="noopener noreferrer nofollow">correction</a>, as the market shows signs of consolidation.
The Relative Strength Index (RSI) stands at 73.45, indicating overbought conditions, with the 14-day average RSI slightly higher at 79.59. This divergence suggests waning bullish momentum. The Chaikin Money Flow (CMF) at 0.15 reflects positive capital inflow, though a slight decline signals weakening buying pressure.
Moving averages paint a cautious picture. The short-term moving average remains above longer-term averages, reflecting recent bullish momentum. However, the lack of a golden crossover between major moving averages dampens expectations for sustained upward movement. The price struggling to break above $1.15 also raises concerns.
<h3 class="wp-block-heading" id="h-what-s-next-for-ada">What’s Next for ADA?</h3>
The chart hints at a possible head-and-shoulders pattern, a classic bearish signal. If confirmed, it could indicate a deeper <a href="https://thenewscrypto.com/bitcoin-pullbacks-to-91k-following-major-liquidations/" rel="noopener noreferrer nofollow">pullback</a> in the coming days. Volume analysis shows reduced buyer enthusiasm as $ADA trades near resistance levels, adding weight to the bearish argument.
A breakout above $1.16 could negate this bearish outlook, potentially driving <a href="https://thenewscrypto.com/hbar-bulls-propel-price-to-surge-48-with-key-technical-levels/" rel="noopener noreferrer nofollow">prices</a> higher. However, if $ADA fails to hold above $1.10, it may invite increased selling pressure. RSI trends and trading volume will play key roles in determining the next move.
Despite its recent surge, Cardano’s outlook remains uncertain. Overbought RSI levels, weakening capital inflow, and bearish chart patterns call for cautious optimism.&nbsp;
Highlighted Crypto News Today <a href="https://thenewscrypto.com/can-doge-break-through-1-after-breaking-key-resistance/" rel="noopener noreferrer nofollow">Can DOGE Break Through $1 After Breaking Key Resistance?</a>

Are Bearish Signals Warning of a Reversal for Cardano ($ADA)?

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