- The price of Cardano (ADA) dropped more than 5% over the last 24 hours.
- Volume for the altcoin surged in the last day as a market-wide selloff took place.
- Some traders have identified ADA’s current price level as a buy opportunity.
Cardano is a third-generation, decentralized proof-of-stake (PoS) blockchain platform designed to be a more efficient alternative to proof-of-work (PoW) networks. Scalability, interoperability, and sustainability on PoW networks like Bitcoin are limited in terms of scale because of the high amounts of energy they use as well as the slow transaction times.
Recently, analysis performed by the blockchain intelligence firm, Santiment, revealed that there has been a massive spike in whale activity for Cardano’s native cryptocurrency, ADA.
Cardano (ADA) Current Market Standing
Cardano (ADA) is ranked as the seventh biggest project in terms of market cap, according to CoinMarketCap. It experienced a 24-hour price drop of 5.03%, taking its price down to $0.3372 at press time. The Ethereum-killer’s market cap currently stands at $11,693 billion.
Meanwhile, ADA’s 24-hour trading volume currently stands at $391.326 million following a 24-hour increase of 90.44%. Furthermore, the price of ADA is nearer to its 24-hour low at $0.3276. The altcoin’s daily high stands at $0.3555.
The 24-hour drop in ADA’s price has added to the altcoin’s negative weekly price performance. At press time, ADA’s price is down 11.45% over the last 7 days.
Cardano (ADA) Technical Overview
4-hour chart for ADA/USDT (Source: TradingView)
ADA’s price has been in a downward trend for the last 2 weeks as it printed lower lows and lower highs during this period. This downward trend forced ADA’s price into a corner – squeezing it between the 9 EMA line on its 4-hour chart and the major support level at around $0.3437.
ADA’s price succumbed to this pressure over the last 24 hours, however, causing it to plummet 5.79% below the key support level at $0.3437.
Buyers have, however, identified the price drop as an opportunity to purchase the altcoin at a premium. This can be seen by the current 4-hour candle wherein ADA’s price rose from an opening price of $0.3371 to a high of $0.3375. The altcoin’s price has, however, retraced slightly from its 4-hour high to trade at its current price at press time.
ADA’s recovery can also be seen in the RSI indicator on its 4-hour chart. At press time, the RSI line on the 4-hour chart is sloped positively toward overbought territory.
A confirmation of ADA’s recovery will be when the RSI line on the 4-hour chart crosses above the RSI SMA line on ADA’s 4-hour chart.
Daily chart for ADA/USDT (Source: TradingView)
Looking at the daily chart, ADA’s price is still trading below the 9-day and 20-day EMA lines at press time after breaking below the two key support levels on 22 February, 2022.
Technical indicators on ADA’s daily chart remain bearish at press time – suggesting that the altcoin’s price will drop in the next 24-48 hours. This first bearish technical flag that traders and investors will want to take note of is the daily RSI line being positioned below the daily RSI SMA line.
The daily RSI line is also sloped negatively towards oversold territory – hinting at a continued price drop in the next 2 days. Secondly, the 9-day EMA line is positioned below the 20-day EMA line at press time, and is bearishly breaking below the longer 20 EMA line. This suggests that the bearish momentum may continue to grow over the next 2 days. Should this happen, ADA’s price will look to drop down to the next major support level at around $0.32 again.
Traders and investors also need to keep in mind that the business week is coming to a close. This has historically resulted in price drops marketwide.
This bearish thesis will be invalidated, however, if ADA’s price is able to close today’s trading session above the key price level at around $0.3437. Should this happen, then traders will want ADA’s price to flip the level at $0.3504 into support before entering into a long position for the altcoin.
Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
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