Cardano, due to its significant price slide, is one of the most influential cryptocurrencies. Virtual currency is still a significant threat and discouragement because of its volatility. The price swings could exceed ten in one minute. An investor and a token’s investors will always be happy with a positive price movement. A price decline could be dangerous for investors and token holders.
Recent trends in the cryptocurrency market have shown a downward trend. This is causing many tokens to drop below their expected prices, even though some investors have made massive selling moves. Cardano’s price plunge on Thursday seems to have caused instability. On Thursday, it fell to below the possible support level. Cardano is likely to suffer further losses if there’s no increase in crypto trading volume.
Cardano is now fighting dangerously from its drop position as it’s beyond the supporting mark. Although it was ranked eighth in market capital, Cardano had suffered a 7.7% plunge within the past 8 hours.
Cardano’s price has fallen to $0.50 below the support level. The liquidation of the Cardano has resulted in more than $1.40million being raised from crypto derivatives markets. There is a greater chance of a more complicated restoration if the selling pressure rises.
Analytical Study Of Cardano For Support Level
ADA’s last 4-hour price chart analysis depicts a release from a symmetrical triangle. As the price drops below the support level, its Y-axis height pattern represents a 33.5% dip for the token. A candlestick that is close to the trend at 4-hours would show a lower price than the $0.45 Fibonacci Retracement level. It could be a confirmation of the downward price trend.
Where there’s a continuation of the pattern, ADA could maintain a downward trend that reaches $0.34 or $0.32. The token reached $0.38 by closely watching its movements on May 12. If it continues to move downwards, this could become its support level.
If there’s continuous trading of ADA below $0.46, the bears will benefit more. It’s possible to revert the negative appearance of the price drop for the token. It would be necessary to remove the resistance barrier with a candlestick. This could take place for 4 hours.
Also, cutting off some of the supply processes could spike ADA’s number of buying orders. Hence, the token’s price may reach $0.61 as it moves up.
In the last few weeks, there have been many fears, uncertainties and concerns about crypto markets. According to the Fear and Greed Index, investors and others in crypto markets are experiencing more negativity.
Bitcoin could be a possibility, if you follow both the on-chain and technical indicators. The token has yet to see a full-blown negligence by participants.
Featured image by Pexels. Chart from TradingView.com