The Cardano price continued to depict a strong bearish influence in the market. The coin lost over 7% of its value over the last 24 hours. On a weekly time frame, ADA was down by 14%. The extended price pullback might continue, so investors should be wary of their next move.

The ADA price was unsettled; the only way investors can make gains is to sell now and buy when the coin dips further, as it would recover lost gains by correcting itself. The technical outlook for the coin supported the bearish thesis and emphasized that ADA might nosedive below its local support line.

The trading volume of Cardano also dipped, indicating that sellers have taken over the market. In case of a price correction, if ADA manages to move above the $0.30 price mark, then the bulls will make a comeback. If bearish momentum continues to prevail, then investors will be presented with a shorting opportunity.

Cardano Price Analysis: One-Day Chart

Cardano was priced at $0.26 on the one-day chart | Source: ADAUSD on TradingView

ADA was trading at $0.26 at the time of writing. The altcoin continues to remain slippery ever since it lost the $0.44 support line. As accumulation remained considerably low on the chart, there are chances that the token’s value will drop further.

Overhead resistance for the coin stood at $0.28 and then at $0.29. There will be rigid resistance at the $0.30 mark. In the event of the price falling further, the first stop would be at $0.24 and then at $0.22. The amount of ADA traded in the last session declined, indicating a fall in demand for the altcoin.

Technical Analysis

Cardano was oversold on the one-day chart | Source: ADAUSD on TradingView

The altcoin has remained in seller territory for most of November and all of this month. Confirming that, the Relative Strength Index was parked underneath the 20-mark. This was a sign of overselling, indicating that the altcoin was heavily undervalued.

ADA dipped below the 20-Simple Moving Average line, and that meant lowered demand. It also depicted that the sellers were driving the price momentum in the market.

Cardano formed sell signals on the one-day chart | Source: ADAUSD on TradingView

In accordance with the other technical indicators, the coin formed a sell signal on its daily chart. This would point to a shorting opportunity for investors in order to make up for the loss they incurred. The Moving Average Convergence underwent a bearish crossover and formed a red signal bar, which was the sell signal for the altcoin.

MACD reads the price momentum, and the indicator agrees with the bears. The Directional Movement Index portrays the price direction. DMI was negative as -DI (orange) was above the +DI (blue) line. The Average Directional Index (red) was up and above the 20-mark, meaning that bearish price action is gaining strength.

Since 2022 kicked off, the crypto industry has witnessed a series of incidents involving security breaches. Three Arrows Capital was accused of misappropriating client funds and faced a liquidity crisis; FTX also suffered a run that led to a liquidity crunch because it misused users’ assets. To date, many individual and institutional investors still cannot get their money back from Three Arrows Capital and FTX. Crypto technology was showered with praise when it was invented, and people used to say that it was the trust machine that would enable full information transparency. However, after more than a decade since the birth of Bitcoin, today’s crypto industry is accused of frequent frauds and a lack of transparency.

In light of the recent crypto scandals, CoinEx has taken fast actions to work out a plan to help users understand CoinEx’s asset transparency more conveniently and launched Proof of Reserve to reassure all investors and promote the sustainable, healthy development of the crypto industry. Right now, CoinEx’s Proof of Reserve covers BTC, ETH, CET, USDT, USDC, and SHIB. In the future, more cryptos will be covered.

What is Proof of Reserve?

Proof of Reserve is a way to audit assets. It employs immutable technical measures to verify whether a platform has enough on-chain assets to back the book assets of its users.

CoinEx uses Merkel Tree to prove that the exchange maintains a 100% reserve rate. Specifically, this audit methodology requires three key steps for verification:

1. CoinEx uses Merkle Tree as a data structure to encrypt user assets and publish the total assets of all users at the same time. Every CoinEx user can check whether his or her account assets are included in the Merkle tree to verify the authenticity of the figures;
2. CoinEx displays the total assets of all on-chain wallet addresses and wallets held by the exchange, and users can verify CoinEx’s ownership of the addresses through the relevant tools;
3. By comparing the total assets of all users with the total assets of all on-chain addresses on CoinEx, users can verify the asset reserve rate of CoinEx.

When the total on-chain assets on CoinEx are greater than or equal to the total assets of the user, it proves that CoinEx maintains a 100% reserve rate. In that case, all account balances are backed by real assets and CoinEx didn’t misuse user assets.

Right now, users can check CoinEx’s Proof of Reserve by clicking on “Proof of Reserve” on the navigation bar at the bottom of the CoinEx website or “Proof of Reserve” on the homepage of the CoinEx App. In the meantime, users may also follow the step-by-step guides in the Help Center to verify whether CoinEx owns the addresses and whether their assets are included in the Merkle Tree.

View CoinEx Proof of Reserve: https://www.coinex.com/reserve-proof

How to verify ownership of CoinEx wallet address:

https://www.coinex.com/reserve-proof/help/verify-address
How to examine whether my assets are in the Merkle Tree:

https://www.coinex.com/reserve-proof/help/check-merkle

Keep user assets secure & build a crypto trust system

As a long-term believer in crypto technology, CoinEx intends to preserve the interest of its users with the best products and services, growing alongside the industry and investors. To that end, the exchange has always regarded asset security as its bottom line. Since its inception in 2017, CoinEx has never suffered any security breach. This zero-accident record is maintained by an extremely stable system protected by comprehensive measures. Meanwhile, CoinEx has promised to maintain a 100% reserve rate and lived up to that promise. On the exchange, users’ assets are never misused for any reason whatsoever, and all withdrawal requests are promptly processed.

CoinEx launched the Proof of Reserve to to prevent manipulation, boost trust in crypto through transparency and mitigate security risks facing the industry. Going forward, CoinEx will not disappoint the users who have always trusted and supported the exchange. We will continue to maintain the 100% reserve rate and rigorously implement all security procedures and criteria. Aiming to make crypto trading easier, CoinEx will protect the interest and assets of more investors and build trust in crypto to enable the healthy development of the industry and provide users with a secure, reliable, and transparent investment environment.