Cardano (ADA) experienced a downward trend on the daily chart, although it saw a 7.4% bounce from its lows on Wednesday. Technical analysis indicates that market bulls face a challenging task in reversing this trend.
Bitcoin (BTC) also saw an 8% increase from its Wednesday lows, driving a rally across the market. However, despite its growing public acceptance, Bitcoin Core developer Matt Corallo expressed concerns about the future. He stated that he finds it difficult to envision a positive future, noting that Bitcoin is moving away from its role as a tool of freedom and diverging from the original vision of its proponents.
Cardano's price action appears grim
On the daily chart, the most recent price rebound paled in comparison to the sea of losses that began in March. The RSI was 46.8 and indicated neutral momentum, but the price action showed a significant decline with a succession of lower highs and lower lows.
The OBV was unable to exceed a local resistance level. This emphasized the sales drive behind ADA. However, Cardano's price projection was also pessimistic for another reason.
The chart above shows two daily period imbalances marked in white. The lower one at $0.48-$0.5 has yet to be retested, but it may fend off bulls in the coming days.
Sentiment is not bullish yet
The Open Interest behind Cardano also increased in May, although was not particularly strong during the most recent price increase. This suggested that speculators had been reluctant about going long on ADA.
Simply said, Cardano's price prognosis remains bearish, with the 23.6% extension level at $0.3 as the next target. This expectation was bolstered by the spot CVD's continued fall, which indicated market selling pressure.
May 2024, Cryptoniteuae