Cardano (ADA), has been a slow-moving trend. It has suffered heartbreak since September 2021 when it reached $3. Any slight improvement in cryptocurrency’s value has always been accompanied by an even deeper plunge, sending it to new lows. The asset lost approximately 60% of its historic high, but it appears that this is not the end.
Cardano (ADA) Has Not Bottomed Yet
Although Cardano (ADA has fallen below $1 it seems that this digital asset is far from reaching its bottom. In the span of one year, it had grown enormously. It started at $0.20 and reached $3 in 2021. However, the digital asset continues to lose its gains right into 2022. It has also lost its support at the $1 level.
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Cardano (ADA), it is important to know where cryptocurrency is trading at the moment. Charts show that the assets are in a dire short-term and medium-term situation. It trades below each of the moving averages and is still below its year-to date average.
Source: ADAUSD on TradingView.com| Source: ADAUSD on TradingView.com
It currently has close to 100% sell sentiments, making it one of digital assets that is experiencing the greatest sell pressures. This is not good news for ADA, which continues to be a popular project in this space. However, it does not compare well with other projects its size. It remains low in value despite the fact that transaction volumes have increased with DeFi protocol like SundaeSwap.
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Each dip brings down the support level for digital assets. The next support level, $0.92 at $1.50 was broken below. This barely protected the asset from the bear attacks. The market quickly fell below the level and now is preparing to move up to the next one. It is likely to encounter significant resistance around the $0.97 mark. The $0.995 level will be followed by $1 at the next point.
If ADA falls below $0.92412121, the next support level is $0.903. If the point isn’t held, then it will fall rapidly to $0.8 and test one of its lowest levels for the year.
Featured image taken from Bear Pile chart on TradingView.com