Cardano [ADA] was trading at $0.0394, at press time, with a 3.91% gain over the 24-hour period. The 12th ranked altcoin by market cap needs to break through a resistance of $0.0502 to see a price breakout, while the support stood at $0.0352.
Looking at ADA’s weekly price chart, the price has been on a decline ever since it closed the double top formation below the neckline on 15 July. A double top formation is considered to be highly bearish, and it started when Cardano peaked with its first top at $0.1004 on 1 April. The price fell to $0.0582 on 6 May, creating its neckline and rose back to $0.101 again on 13 May, creating the second top. After closing below the neckline on 15 July, the price has been on the decline.
The 21-day moving average was above the candle, even before the prices closed down below the neckline and it has continued to do the same, suggesting a bearish sentiment in the market. The RSI indicator shows that the sellers have had an upper hand since July, suggesting that bearish sentiment is more prominent in the market.
Cardano’s weekly chart highlights a prominent bearish sentiment since July, with the selling pressure being more on investors.