Cardano has remained sluggish for a long time, shifting investors’ attention away from the token. The volume over the platform has never been constant and has witnessed huge spikes only in times of a massive rise in the bullish dominance, which triggers a strong ascending trend within the markets. However, this had been for a short time, and as a result, the ADA price has been stuck within a bearish trend since the start of the year.
The ADA price is currently facing barriers from multiple factors, despite some positive developments. The ongoing global geopolitical tensions and regulatory uncertainty are affecting the market sentiments, which is impacting the ADA price rally. The price has experienced substantial declines in recent times, losing over 60% since an earlier peak. Despite forming a bullish pattern, Cardano’s price action is still under significant pressure due to Bitcoin’s overall market influence.
Regardless of this, should we be bullish on Cardano?
The above chart of the ADA price shows that the third-generation token has been under extreme bearish pressure and is stuck within a falling wedge. Each time the price tries to break above the wedge, the bears drag the levels towards new support. With this, Bollinger bands have been squeezing frequently, and unfortunately, the expansion has led the price lower. On the other hand, the CMF has been struggling to rise above 0 since the start of the month, displaying weakness within the markets. As the bears hold enough strength compared to the bulls, th upcoming expansion of the Bollinger bands is expected to drag the ADA price below the support of the wedge.
In such a case, the price is expected to visit the lower support close to $0.55 yet again, and as the volume remains grounded, the possibility of a rebound is lower. Meanwhile, if the Cardano price manages to rise above the average bands of Bollinger, then it may march towards the upper bands, leading to a breakout beyond $0.7. With this, the ADA price may rise above the bearish influence and lay down a strong upswing towards a higher target above $0.8 or even $1.
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