Cardano price has been on a steep downward trajectory for the past few weeks on the back of a dull market and global macroeconomic concerns. The altcoin is down by nearly 6% in the month to date and more than 3% in the past week. Additionally, ADA price has shed more than 30% in the past six months, with its year-to-date price remaining in the red. Cardano’s total market cap has shrunk by more than 1% over the last day to $8.6 billion, while the total volume of the asset traded over the same period edged 13% lower.
Cardano price has recorded significant losses in recent weeks in tandem with the global cryptocurrency market. Most of the digital assets have been treading waters over the past few weeks, with the premier cryptocurrency struggling to break above the crucial level of $27,000. The global crypto market cap has increased slightly over the past 24 hours, while the total crypto market volume decreased by 25%.
The Crypto Fear & Greed Index, which is a key measure of the emotions driving the cryptocurrency market, is a fear level of 39, slightly lower than the fear level of 42 recorded last week. A fear level usually indicates a decline in risk appetite by investors which might prompt traders to sell irrationally.
Investors have been assessing what could be ahead for the economy while weighing the outlook for interest rates after this week’s Federal Reserve policy meeting, which concluded Wednesday. In the meeting, the central bank announced that it would leave interest rates unchanged for now but indicated that another rate is likely this year, in line with market expectations.
The Bank of England and the Swiss National Bank announced the end of their respective interest rate hike campaigns on Thursday. Even so, the banks reiterated that further increases and more sustained higher rates are on the table. The Bank of Japan announced on Friday that it would hold its interest rates at -0.1% while maintaining its outlook and yield curve control policy.
Cardano Price Technical Analysis
The daily chart shows that the Cardano price has been on a consistent bearish trend for the past few weeks, forming a descending channel along the way. The digital currency has failed to clear the crucial level of $0.2785 above the 50-day EMA. The ADA price remains below the 50-day and 200-day exponential moving averages, as well as the 50-day and 100-day simple moving averages.
Its Relative Strength Index (RSI) is slightly below the signal line, while the Moving Average Convergence Divergence (MACD) indicator remains bullish. The Bollinger bands have narrowed with the upper band slightly below the 50-day EMA, suggesting a decline in market volatility.
Therefore, the Cardano price is likely to maintain its bearish stance in the immediate term as bears take full control. The next support levels to watch will be $0.2380 and $0.2205. However, a move above the upper Bollinger band at $0.2605 might pave the way for an increase to the next resistance level of $0.2785.