Over the past weekend, there was a large-scale selling off in the cryptocurrency market, causing Cardano, a layer 1 blockchain, to experience a notable impact. The value of this asset dropped dramatically from its latest low of $0.624 down to $0.45, representing a decrease of approximately 30% within the week. With shifting market emotions and the upcoming Bitcoin halving event on the horizon, Cardano’s price is attempting to hold steady above the $0.45 mark.
Cardano’s V-Top Reversal Signals Seller Control Amid Market CorrectionC
During the wider market downturn, the price of Cardano formed a “V-shaped” reversal from its peak of $0.81 in mid-March. This pattern, indicative of strong seller control, caused the value of ADA to drop by approximately 45%, reaching a trade price of $0.449.
Support at the mentioned 61.8% Fibonacci level for ADA aligns with a significant zone of interest for buyers, leading to increased demand. The surge in buying pressure is indicated by the strong rejection of the daily candle’s tail on April 13th, keeping the price above $0.449.
For those who have been unable to purchase this asset, they can keep an eye on it for the next week and assess if its value holds above the horizontal line. To boost their confidence in a potential recovery, buyers should aim to reclaim the 20-day moving average around the $0.52 price point.
If this downturn indicates a turning point for the price of Cardano’s coin, then it could be a good time to consider buying. However, for traders focusing on trends, the cost of ADA needs to surmount the resistance at around $0.56 to $0.625 in order to confirm an upward momentum.
Instead of that, Santiment, a well-known crypto analysis firm, indicates an increasing interest among traders in Bitcoin. This interest is particularly noticeable with regards to holding strategies during market drops following Bitcoin’s halving event. With altcoins experiencing difficulties, there is a shift towards Bitcoin’s reliability and its ability to be exchanged for fiat currency as market uncertainty grows.
Traders have been intensifying their debates about Bitcoin and the merit of holding onto it during a possible prolonged correction following the halving. Meanwhile, sectors of alternative coins such as AI, gaming, DeFi, memecoins, and others are experiencing significant setbacks. Consequently, it’s likely that the public’s attention will shift towards Bitcoin.
— Santiment (@santimentfeed) April 16, 2024
In simpler terms, the leading cryptocurrencies following Cardano, such as Ethereum and Binance Coin, might experience a slight setback before participating in the bullish trend after Bitcoin’s halving event.
Technical Indicator:
- Directional Movement Index: The wide spread between the DI+ and DI- slope accentuates an aggressive correction trend in action.
Exponential Moving Average: The 20-day EMA acts as dynamic resistance against the occasion of bullish bounces in ADA price.
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2024-04-16 22:13