ADA
What’s Next for Cardano Price After 25% Weekly Decline?
Published
2 months agoon
By
adminCardano price plunged over 10% during Monday’s trading, teasing a bearish breakdown below the psychological $0.3 level. The intensified selling pressure, spurred by a 12% drop in the Japan index and growing recession fears, contributed to a bloodbath in the crypto market. While the bearish momentum softened during U.S. trading hours, major altcoins have yet to show signs of forming a bottom.
Also Read: JPMorgan Cites Buy-the-Dip Opportunity, Crypto Market Recovery Ahead?
Cardano Price Hits Major Support Within Channel Pattern
The daily time frame chart shows a notable correction in Cardano price over the past two weeks. Amid the market correction, the ADA price fell from $0.45 to $0.308, registering a loss of 31.5%, while the market cap plummeted to $11.162.
A deeper technical chart analysis revealed that this downfall contributed to the formation of an expanding channel pattern. The coin price resonating between two diverging trendlines typically indicates market uncertainty and no clear initiation from buyers or sellers.
If the broader market selling persists, the ADA price could tease a bearish breakdown below the lower trendline at $0.28. If successful, the selling pressure will accelerate, plunging the altcoin 15% down to seek support at $0.24.
Additionally, the Global In/Out of the Money (GIOM) metric for Cardano presents a rather bleak outlook. Currently, 28.1 billion ADA tokens are ‘out of the money’ (bought at prices higher than the current market price and thus at a loss), compared to only 5.7 billion tokens that are ‘in the money’ (purchased at lower prices and currently profitable). This imbalance indicates a less stable investor base, potentially leading to heightened susceptibility to panic selling.
Also Read: Bitcoin ETF: Europe’s Capula Management Discloses $500 Mln Holding
Moreover, the number of large transactions has significantly decreased since early July, dropping from 6.5k to 3.02k, registering a 56% decline. This substantial reduction in high-volume trades could indicate waning interest among major investors or a shift towards a more cautious approach in the market.
However, Cardano price currently trades at $0.309 and seeks support at the lower trendline, which previously triggered a 45% rally. A long-wick rejection candle today highlights the presence of demand pressure and potential support for bottom formation.
The daily Relative Strength Index (RSI) has dropped sharply to an oversold position at 26%, potentially enticing dip buyers and setting the stage for a 30% rally to $0.41.
Frequently Asked Questions (FAQs)
The GIOM metric shows the distribution of ADA tokens based on their current profitability. Tokens ‘in the money’ are those bought at prices lower than the current market price, while ‘out of the money’ tokens were purchased at higher prices and are currently at a loss.
The “number of large transactions” refers to the volume of significant trades involving substantial amounts of a cryptocurrency.
A: A broadening wedge pattern is a technical chart formation characterized by two diverging trendlines. This pattern indicates increasing volatility and market indecision.
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Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Crypto Expert Predicts 61% Cardano Crash, Urges Massive ADA Short
Published
5 days agoon
October 1, 2024By
adminDespite ADA excellent performance at the close of September, some market analysts remain skeptical and advise participants to short ADA. According to them, the bull momentum has not entirely re-established itself in the market.
Market analyst RayTrader has updated his bearish prediction for Cardano on TradingView. He acknowledged ADA’s movement into the range of $0.40 on September 26 but still predicted it would drop as low as $0.16 and $0.15 before a possible trend reversal into a bull market.
The current Cardano price is $0.35, and a slip back to this level would represent a 61% loss for investors today. While ADA has not been at this level since December 2020, it can still happen, says RayTrader. A crash to this range amidst the present uptrend sentiment.
RayTrader updated his bearish outlook to suggest that ADA slip below the $0.40 level created an excellent opportunity to sell the coin short, establishing a near-term target of $0.25. Having seen ADA slip to $0.3718 with Monday’s broader market downturn, RayTrader maintained, “Short sellers can keep their positions open, as there is still much downside potential before the likely local bottom at $0.15.
This bearish analyst insinuated that traders who are satisfied with profits from shorting ADA might want to liquidate some positions along the way but he feels that the much more significant profits will come to those who remain patient as the $0.15 target is reached. As such, he thinks this level will likely mark the bottom and probably lay the foundation for a big bull run.
Bearish Price Action, Bullish On-Chain Growth
RayTraderhe remains significantly bearish on ADA, but other market analysts hold a bullish outlook.
While the price action of Cardano has been somewhat uninteresting, according to crypto expert @CryptoFaibik, its network isn’t. Celebrating seven years since the mainnet was turned on with zero hours of downtime, continuous developments in the chain ensure that its growth is stable and progressive.
ADA weekly development report of last week shows a 4.24% increase in the number of projects building on the blockchain, at 1,376, pointing to high developer activity. The number of native tokens on the network also increased by 9.7% to stand at 10.40 million, with token policies surging 78.8% to hit 168,811.
The token also attracts fresh interest, which can influence ADA’s price, with the highly expected Midnight Protocol testnet. The latest announcement reported that for developers, the Midnight Protocol is now live, meaning the important milestone for the platform has finally been reached.
It also pointed out that the number of smart contracts being deployed keeps increasing, with 88,340 active Plutus scripts-a number considerably higher. Transaction volume reached 96.94 million from 82.7 million the previous month, which signifies increased adoption of the Cardano ecosystem.
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Analyst Predicts 8,500% Rally For Cardano To Reach $31 As Indicators Turn Bullish
Published
2 weeks agoon
September 23, 2024By
adminSince March, Cardano (ADA) has experienced recurring periods of significant price declines. However, crypto pundit Dan Gambardello, a popular analyst on the Crypto Capital Venture’s YouTube channel, predicts a potential bullish reversal based on an analysis of the weekly and daily charts.
Key Technical Indicators Support Bullish Outlook
According to the analyst in a recent video, ADA is poised for a significant breakout, potentially reaching around $31, representing a remarkable 8,500% increase from current levels. The analyst highlighted that the market has experienced “180 days of downside” since March, creating favorable conditions for this anticipated surge.
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He further suggested that ADA could break its current cycle of lower highs and lower lows, citing key technical indicators, particularly the MACD (Moving Average Convergence Divergence) on the weekly chart, which is showing signs of a bullish crossover. “The macro momentum of Cardano is signaling its readiness to bottom,” he said, emphasizing the upward momentum of the MACD histogram since May.
However, he cautioned that ADA has yet to decisively move above the 20-day and 50-day moving averages. He warned that while testing key levels, the move could fail, advising patience until more price action confirms a true breakout. While some analysts view Dan Gamberdello projections as overly optimistic, crypto analyst Sssebi has offered a more conservative forecast.
He forecasts a rally of 20x to 30x for Cardano over the next year. Sssebi noted that Cardano current position mirrors its state during the last cycle, indicating a major rally may be imminent. He predicts that Cardano could hit a minimum price of $5 by 2025, with a possible peak of $10 during the height of the bull market.
Cautious Outlook For Cardano
However, not all analysts are as bullish. Trader “Lingrid” has adopted a more cautious perspective regarding Cardano (ADA), predicting a short-term pullback for the cryptocurrency. In a recent post, he noted that “ADAUSDT appears bearish on the daily timeframe,” forecasting a potential decline to $0.325 and suggesting that ADA may remain within the consolidation zone between $0.30 and $0.34 for an extended period.
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This negative outlook is further reinforced by the bearish on-chain metric. According to Coinglass, ADA’s Long/Short ratio currently stands at 0.926, indicating a prevailing bearish sentiment among traders.
Furthermore, its future open interest has declined by 3.8% in the last 24 hours and has been steadily falling. This suggests that traders are either liquidating their positions or hesitant to establish new ones.
At press time, ADA was trading near the $0.352 level and had experienced a modest price decline of 0.8% in the last 24 hours. During the same period, its trading volume had dropped by 18%, indicating lower participation from traders amid selling pressure.
Featured image created with Dall.E, chart from Tradingview.com
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Analysts Kick Against Cardano Recovery, Says ADA Price Is Destined For 33% Crash
Published
3 weeks agoon
September 15, 2024By
adminThe overall bearish sentiment for Cardano (ADA) continues to rise as analysts now foresee a massive 33% price crash for the altcoin. This pessimistic projection comes as ADA struggles to gain traction in the market, with its value remaining stagnant or steadily dropping to lower levels.
Cardano (ADA) Crash Incoming
Compared to other prominent altcoins in the crypto market, Cardano has performed poorly, struggling with price declines and sluggish growth. Consequently, a crypto analyst, identified as ‘Financialfreedomgoals’ on TradingView, predicted that cryptocurrency is likely to experience more than a 30% crash to new lows.
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The analyst notes the broader negative state of the current crypto market, highlighting that most altcoins are stuck in a “bearish rut.” He disclosed that rather than achieving new all-time highs, these coins have been setting fresh lows, underscoring the persistent downtrend and decreased confidence amongst investors.
Cardano, in particular, has had its share of negative sentiment and volatility. The cryptocurrency has stayed unwaveringly below the Exponential Moving Average (EMA) 200 line, a key technical indicator traders often use to gauge long-term trends. Typically, when the price of a cryptocurrency stays below this line, it tends to signal a continuation of a bearish trend.
Given the present bearish state of the market, the crypto analyst has dismissed the idea of an upcoming altcoin season, where the majority of cryptocurrencies excluding Bitcoin experience significant price gains.
On the daily time frame, Cardano is trading below the EMA 200 line and the bearish trend line. Initially, a rising wedge pattern had formed on the cryptocurrency’s price chart, however instead of breaking out, Cardano saw a series of negative candlesticks alongside a bearish crossover on the Moving Average Convergence Divergence (MACD).
This series of negative indicators suggests that bears may be tightening their grip on Cardano’s price. As such, the crypto analyst foresees the ADA continuing its descent to reach fresh lows at target areas: 0.2506 or 0.2197. These targets are calculated using the Fibonacci retracement ratios of 1.272 and 1.618.
0.3815 Resistance Could Trigger Bullish Surge
Despite maintaining a largely bearish stance on Cardano’s price outlook, Financialfreedomgoals has hinted at a potential bullish turnaround. He has suggested that a price reversal for ADA could be possible if the price of the cryptocurrency manages to break above the key resistance at 0.3815 Fibonacci level.
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Crypto analyst Sssebi shares an even greater bullish outlook for Cardano. He highlights that during the previous bull market, ADA’s value increased by more than 100X. As a result, the analyst believes that ADA will rally by at least 20X in this current market cycle, expressing even stronger confidence that the cryptocurrency will reach $5 soon.
As of writing, the price of ADA is trading at $0.3576, reflecting a significant increase of 11.39% over the past week, according to CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
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