Cardano is one of the high impact cryptocurrencies due to significant price slide. Price volatility remains one of the substantial discouragement and danger of virtual currency. Their price jump can be more than ten times in a minute. A positive price move is always a favorable trend for a token and its investors. However, a fall in prices could pose a threat to both.
The general crypto markets have seen more downsides lately. This has left many coins at the expected price levels, even though some investors are selling massively. Cardano appears to have entered a volatile phase after its significant price drop. On Thursday, its decline went below the potential support level. Without increasing trading volume in the cryptocurrency market, Cardano will suffer more losses.
Cardano is now fighting dangerously with its drop position as it crosses the supporting mark. Although its previous market cap ranking was the eighth cryptocurrency, the token has registered a decline of 7% over the past 8 hours.
Cardano price has now declined below the $0.50 support level. Hence, its liquidation has raised over $1.40 million from crypto derivatives exchanges. If the selling pressure builds up, the chances of a more difficult recovery will be higher.
Cardano’s Analytical Study for Support Levels
ADA’s price chart analysis for the past 4 hours depicts a release from a symmetrical triangle. The y-axis pattern for its highs represents a 33.5% drop for the token as its price moves below the support level. Using a candlestick close that could be showing a 4-hours trendline, there will be a downside break from the 50% Fibonacci retracement level to $0.45. This will likely bring confirmation of the negative price trend.
Where there is a continuation of the pattern, ADA is likely to sustain a downside move towards $0.34 or $0.32. Looking closely at its movement on May 12th, the coin moved to $0.38. This could eventually become a potential support level if it moves further downwards.
If ADA continues trading below $0.46, the bears will have more gains. It is possible to revert to the downside of the decline in the value of the token. This will require breaking of the resistance resistance using the closed candlestick for the 4 hour experiment.
In addition, cutting down on certain supply processes could increase the number of ADA purchase orders. Therefore, the price of the coin could reach $0.61 if it rises.
The cryptocurrency market has now been the victim of many uncertainties, doubts and fears over the past few weeks. The Fear and Greed Index report shows that the level of negativity has increased among investors and other participants in the crypto market.
There is still hope for Bitcoin, following the technical and on-chain indicators. This is because the token has not yet received a full swag from the participants.
Featured image from Pexels, chart from TradingView.com