Cardano Price Prediction as $475 Million Trading Volume Comes In – ADA to the Moon?
Cardano price appears to have triggered massive sell positions after it failed to rise above resistance at $0.4400. The smart contract platform bowed to increasing overhead pressure as investors locked in profits. ADA must reclaim immediate support at $0.4000; otherwise, its leg may stretch to $0.3730 before bulls get another chance to push prices higher again.
The US Fed (Federal Reserve) will announce the much-awaited interest rate decision on Wednesday. Market participants are waiting with bated breaths to see whether the regulator will continue the interest rate hike streak that has lasted for months this year amid calls to control inflation.
A 0.75% increase in interest rates would mean tougher times ahead, with investors likely staying clear of riskier assets like cryptos. However, the crypto market has become resilient over the past few months. Hence, massive price drops remain doubtful, with some experts predicting a possible pump.
Although ADA's trading volume averages between $450 million and $500 million, it mostly constitutes selling pressure. Moreover, technical insights from the eight-hour timeframe chart reveal that sellers have the reins, at least for now.
The outlook for Cardano flipped bearish immediately after the price bounced off resistance at $0.4400 – an area reinforced by the 200-day EMA (Exponential Moving Average) (in purple).
A rising wedge pattern worsened the situation for the bulls, who have resolved to wait for a trend reversal at a lower price level. A break below the lower trend line of the pattern confirms the bearish move, like in the case of Cardano price, as shown in the chart below.
Sell orders entered marginally below the wedge and immediately turned profitable. ADA now trades below the
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