Cardano price has seen a sharp decline over the past few weeks due to depressed markets and global macroeconomic concerns. The altcoin is down nearly 6% so far this month and more than 3% last week. Additionally, ADA prices have fallen more than 30% in the past six months, and year-to-date prices remain in the red. Cardano’s overall market capitalization fell more than 1% over the past day to $8.6 billion, with total volume of assets traded falling 13% over the same period.
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Cardano price, along with global cryptocurrency markets, has recorded significant losses in recent weeks. Most digital assets have been struggling over the past few weeks, with the top cryptocurrency struggling to break above the critical level of $27,000. Global cryptocurrency market capitalization has increased slightly over the past 24 hours, while the overall cryptocurrency market size has decreased by 25%.
The cryptocurrency fear and greed index, which is a major emotional indicator that moves the cryptocurrency market, is at a fear index of 39, slightly lower than the fear index of 42 recorded last week. Fear levels generally indicate that investors’ risk appetite may be decreasing, which may lead traders to sell irrationally.
Investors have been assessing what could happen next for the economy as they weigh the interest rate outlook following this week’s Federal Reserve policy meeting, which ended Wednesday. At the meeting, the central bank announced that it would keep interest rates unchanged for now, but indicated that it may raise interest rates again this year in line with market expectations.
The Bank of England and the Swiss National Bank each announced on Thursday that they were ending their interest rate hike campaigns. Nonetheless, banks have repeatedly emphasized that further hikes and more sustained rate hikes are possible. The Bank of Japan announced on Friday that it would keep interest rates at -0.1%, maintaining its outlook and yield curve control policy.
Cardano price technical analysis
Looking at the daily chart, we can see that the Cardano price has been in a continuous bearish trend over the past few weeks, forming a downward channel. The digital currency failed to clear the important level above the 50-day EMA at $0.2785. ADA price remains below the 50-day and 200-day exponential moving averages and the 50-day and 100-day simple moving averages.
The relative strength index (RSI) is slightly below its signal line, and the moving average convergence divergence (MACD) indicator remains bullish. Bollinger Bands indicate that market volatility is decreasing, with the upper band slightly below the 50-day EMA.
Therefore, the price of Cardano is likely to remain depressed in the short term, with the downside fully under control. The next support levels to watch are $0.2380 and $0.2205. However, if it exceeds the upper Bollinger Band at $0.2605, it may rise to the next resistance level at $0.2785.
ADA price chart