Cardano (ADA) on the Edge: A looming price drop
Get the latest on Cardano's price action
- Share
- Tweet
Cardano Suffers 20% Price plunge: Implications for ADA's upcoming trajectory
It's a nail-biting time for Cardano (ADA) investors as the cryptocurrency hovers dangerously close to a critical support level at $0.65.
With a 3.75% price drop in the past 24 hours, ADA finds itself trading around $0.657 at the time of writing. This slide has triggered a surge in trading volume, rising by 12% according to CoinMarketCap data.
Potential for mass liquidations
The bearish outlook gains strength as traders could face potential liquidation of million-dollar positions if ADA continues to fall. Coinglass reports that long positions worth $5.56 million could be liquidated if ADA breaks below the $0.65 support level.
Moreover, traders have been heavily positioned at this level, with $10.33 million worth of short positions stacked up too. A breakdown in this crucial support could lead to a significant liquidation event.
Whale and investor confidence wanes
The dropping participation from large investors and whales hints at a lack of confidence in ADA. According to IntoTheBlock's analysis, transactions worth $1 million to $10 million have dropped by a staggering 83.54%. Transactions from investors in the $1,000 to $10,000 and $10,000 to $100,000 ranges have also decreased significantly by 65.20% and 60.86% respectively.
Technical analysis highlights a possible crash
Expert technical analysis reveals that if ADA fails to hold the $0.65 support level and closes a daily candle below it, it could descend further. The downward spiral might take ADA down to the $0.52 level, representing a potential 20% price drop.
ADA's Relative Strength Index (RSI) currently stands at 44, edging towards the oversold area, indicating weakening buying pressure and suggestive of a possible continuation of the bearish trend.
Without a strong rebound to regain the $0.65 support, Cardano could be on the brink of a major price correction.
A sneak peek into the market vibes
Current trends and concerns
- Liquidation Factor: If the price tumbles below the $0.65 barrier, long positions worth $5.56 million could be liquidated. However, an uptrend could spark a liquidation squeeze as major liquidation points are positioned above present price levels.
- Whale Inactivity: Whale transactions have dropped by 83.54%, indicating reduced participation from major players and waning confidence.
- Price Action: There's an overall decline in ADA's price, with a 3% drop in the last 24 hours and nearly 8% over the past week. Bullish signs are hidden amidst the drops, such as strong address growth and positive sentiment.
- Technical Bullishness: The potential for a bullish comeback exists if buyers can flip the $0.7477 neckline into support, launching ADA into a new phase of bullish momentum.
Bull vs. Bear
Market sentiments and developments
- Bullish Predictions: Analysts foresee ADA hitting potential price targets like $3, $5, or even $10, buoyed by fundamental developments such as probable integrations with Ripple and strategic ecosystem growth.
- Bearish Concerns: The current price fall, potential liquidation, reduced whale activity, and increased trading volume during price drops lend weight to bearish sentiments.
ADA's road ahead
The cryptocurrency market for ADA is rife with mixed signals, with potential bullish gains overshadowed by bearish trends and market uncertainty. The fate of ADA lies in whether it can fortify its support at the $0.65 level or succumb to market pressures and slide further. Stay tuned for updates as the situation unfolds.
- The current price drop of Cardano (ADA) to around $0.657 has triggered a 12% increase in trading volume, according to CoinMarketCap data.
- If Cardano fails to hold the $0.65 support level, it could descend further to the $0.52 level, representing a potential 20% price drop, according to technical analysis.
- Coinglass reports that long positions worth $5.56 million could be liquidated if Cardano breaks below the $0.65 support level, and there's a potential for a liquidation squeeze if the price turns bullish.
- The dropping participation from large investors and whales hints at a lack of confidence in ADA, with transactions worth $1 million to $10 million decreasing by 83.54%.
- Cardano's Relative Strength Index (RSI) currently stands at 44, indicating weakening buying pressure and suggestive of a possible continuation of the bearish trend.
- Analysts foresee ADA hitting potential price targets like $3, $5, or even $10, buoyed by fundamental developments such as probable integrations with Ripple and strategic ecosystem growth.
- The cryptocurrency market for ADA is rife with mixed signals, with potential bullish gains overshadowed by bearish trends, reduced whale activity, and increased trading volume during price drops, creating a sense of uncertainty among investors.
