Cardano’s 2-month bullish momentum ends

Cardano's (ADA) price has been in a consolidation phase since early August, unable to break free from the macro-level slowdown. Despite the early signs of bullying, the ADA has struggled to maintain upward momentum.

This extended consolidation near key support levels has left investors wondering what will happen next for Cardano's price.

Cardano faces the bears

Cardano's current market sentiment highlights potential challenges, especially among short-term holders. The MVRV Long/Short difference, a measure of market profitability, indicates that short holders are currently in the profit. These short-term holders typically hold assets for less than a month and are more inclined to sell during market fluctuations.

Large negative values ​​on the MVRV long/short differential highlight their profitability, indicating the possibility of increased selling pressure, creating additional headwinds for ADA's price stability. A wave of short-term selling could halt any potential upward movement, especially if ADA prices fail to recover.

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Cardano's macro momentum has recently reversed, with technical indicators such as the Moving Average Convergence Divergence (MACD) signaling the end of the bullish phase. After more than two months of positive activity, the MACD recorded its first bearish breakout since mid-August. This change reflects a loss of upward momentum and introduces the possibility of a further decline.

A bearish crossover on the MACD suggests that Cardano may face further resistance to gaining ground. This trend highlights the challenges faced by the ADA, with bearish initiatives casting a shadow over the near term.

ADA Price Prediction: Getting Support

The price of Cardano has decreased by 10% in recent days, it is currently below $0.33. This price point has served as a critical support floor for more than a month, and losing it would signal further decline.

Despite the possible recovery, ADA has struggled as resistance in recent months and could still close below $0.33. If ADA is range-bound, it could trade between $0.31 support and $0.33 resistance in the short-term.

Read more: Cardano (ADA) Price Prediction 2024/2025/2030

If Cardano manages to breach $0.33, it will face resistance at $0.37, a key that marks the upper limit of ADA's recent consolidation range. Only a break above $0.37 would destroy the bear-neutral survey and indicate a stronger advance.