Cardano’s price is facing downward pressure as sellers dominate the market, leading to a decline of 10.05% and a current price of $0.67. This bearish trend is further exacerbated by Bitcoin’s recent drop below the $90K mark, affecting the broader cryptocurrency market. The selling pressure persists, with intraday declines of 5.42% continuing to push prices down. Analysis suggests that the price struggle to break past the 20-day EMA resistance, while also retracing from the 50% retracement level at $0.7746 and aligning with the 38.20% Fibonacci level. Failure to hold above this level would result in a next support level of $0.60 – a psychological break point. _
Ali, a prominent crypto analyst, warns that Cardano’s price is potentially breaking below a parallel channel, and the ADA must regain $0.67 quickly to avoid further declines. If it fails, the price may drop to $0.53, according to his analysis.
Market indecision persists as evidenced by a 0.0045% decrease in funding rates on Cardano derivatives markets, reflecting a lack of confidence in price stability. Open interest has decreased to $544.94 million – a 15% reduction, indicating traders are reducing their positions.
However, some traders remain optimistic about Cardano’s market prospects, evidenced by the long-to-short ratio remaining at 0.9216 – indicating buy signals. Binance also shows a high bullish outlook with its Long to Short Ratio at 2.73.
Increased liquidations have further contributed to market volatility and prompted traders to withdraw their investments. However, this could be a long-term phenomenon as market volatility continues to be a factor.
On the positive side, the SEC’s acknowledgement of a Grayscale Cardano Trust ETF proposal has sparked optimism. The proposal, filed by NYSE Arca, seeks permission from the SEC to trade Grayscale’s Cardano Trust shares under NYSE Arca Rule 8.201-E. This could drive adoption among institutional investors and benefit Cardano’s price.
Will Cardano’s price drop to $0.50? The market is nearing a critical support zone, with the next potential barrier at the 23.60% Fibonacci level ($0.53). A breakdown from this level could lead to further declines and potentially push the ADA price down to $0.50. However, if sentiment improves, it may rise within a falling wedge pattern, aiming for resistance levels around $0.7746.
Will Cardano (ADA) Price Drop to $0.50 Amidst Bearish Pressure?
The article examines the potential risks and opportunities associated with Cardano’s current price action,