Cardano (ADA) bulls appear to be losing their grip amid the broader crypto market’s consolidation over the past week.
Technical indicators suggest that the bullish presence in ADA’s spot markets is fading, a shift that could lead to a potential revisit to its year-to-date low of $0.50.
ADA Bearish Momentum Builds as Buying Pressure Dries Up
ADA’s Elder-Ray Index, which measures the strength of its bulls relative to bears, has shown a consistent decline over the past few days, signaling weakening buying momentum. Readings from the ADA/USD daily chart have revealed a steady decrease in the sizes of the histogram bars that make up this indicator, highlighting the dip in bullish strength.
A gradual reduction in the size of the Elder-Ray Index bars typically suggests a diminishing gap between bullish and bearish forces. As bullish pressure weakens and bears begin to gain control, the histogram bars shrink. This often serves as an early warning sign of a trend reversal or increased likelihood of downward price movement.
This trend implies that ADA’s buyers are steadily losing control, and a deeper correction may be underway.
Furthermore, ADA’s Chaikin Money Flow (CMF) is negative and has remained below the zero line since Monday. At press time, this momentum indicator, which measures money flow into and out of an asset, is at -0.09.
A negative CMF reading like this indicates the asset is experiencing more selling pressure than buying pressure. This hints at the likelihood of a further decline in ADA’s value in the short term.
ADA Bulls Battle to Defend $0.66
ADA currently trades at $0.69, resting above support formed at $0.66. If bullish pressure weakens further, ADA could break below this support level and fall toward its year-to-date low of $0.51.
On the other hand, a resurgence in new demand for the altcoin will prevent this from happening. If Cardano bulls increase their buying activity, the support floor at $0.66 will strengthen, propelling ADA’s price to $0.76.
The post Cardano Bull Power Fades as ADA Eyes Return to Year-To-Date Lows appeared first on BeInCrypto.
