As a seasoned researcher with over a decade of experience in the financial markets, I have seen my fair share of market fluctuations, bull runs, and bearish downtrends. The recent sell-off in the crypto market, including Cardano (ADA), is no exception to this rollercoaster ride.
Over the weekend, the downward trend in the cryptocurrency market intensified, as significant digital currencies continued to register increased losses throughout the week.
As a researcher examining the current market landscape, I’ve observed that the broader downturn has affected a multitude of digital assets, including Cardano. The surge in selling pressure has led to a decline in ADA‘s price, causing a ‘death cross’ signal to appear on its short-term charts, signaling potential further downward movement.
A “death cross” is formed when a short-term average line drops beneath a longer-term average line, indicating a potential increase in downward price movement or bearish trends.
For Cardano, you can notice on the four-hour chart that the 50-day moving average has dropped beneath the 200-day moving average. Typically, this occurrence is interpreted as a bearish sign, implying that the digital currency might experience additional downward trends.
What’s next for ADA price?
Currently, as I’m typing this, Cardano (ADA) has decreased by 3.42% over the past 24 hours, landing at $0.3585. On a weekly basis, it has dropped by 13%. Notably, since July 27, there’s been a significant downtrend in ADA prices as it peaked at $0.43. Over the seven days following this date, Cardano has seen losses on five out of those seven days.
Market analysts are keeping a close eye on significant price floor points to predict whether there might be an increase in ADA‘s cost. Additionally, they will scrutinize other important technical signs to ascertain the direction of the Cardano pricing pattern.
As I delve deeper into my analysis, these upcoming days could hold significant implications for the future trajectory of ADA. Will it find stability and recovery, or will the downward trend continue? This is a question that I’m eagerly anticipating the answer to in the coming days.
Based on Santiment’s analysis, when the seven-day average return of traders hits record lows for cryptocurrencies like ADA, it often indicates a higher likelihood of a price increase or bounce. In a recent tweet, Santiment noted that all crypto markets are currently retracing, with some predicting BTC could drop below $50K again. However, when we observe such low returns for top cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Ripple (XRP), Dogecoin (DOGE), and Chainlink (LINK), the probability of a price recovery increases significantly.
A relief rally for ADA might target the daily SMA 50 at $0.397 and further at $0.43. A sustained breach above the daily SMA 200 at $0.50 might kickstart a bullish comeback for Cardano while allowing it to escape its current trading range.
If the downward trend continues, Cardano may look towards finding its next level of support within the price range of approximately $0.31 to $0.33.
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2024-08-04 18:21