|

Cardano price could shed more weight, but panicking investors can exit their positions here

  • Cardano price has been in a downtrend since the August 14 swing high at $0.594.
  • The 23% sell-off will likely undergo a relief rally to $0.494 or $0.510 before resuming its downward move.
  • A daily candlestick close that flips the $0.609 hurdle into a support floor will invalidate the bearish thesis. 

Cardano price has seen three consecutive down candlesticks denoting an aggressive seller-dominated regime. This massive sell-off seems to originate from the influential lead crypto Bitcoin and is affecting many altcoins. 

Cardano price and potential relief rally opportunity

Cardano price has crashed 23% over the last four days and is currently trading at $0.470. The recent sell-off has pushed ADA to slide below the midpoint of the $0.380 to $0.609 range at $0.494.

A stabilization of selling pressure for big crypto could see altcoins undergo a relief rally, which could potentially push Cardano price higher. In such a case, ADA is likely to revisit the $0.494 hurdle, but in some cases, ADA might rally more concertedly and retest the $0.525 resistance level.

This relief rally will provide a haven for investors to get out of their loss-making positions, especially if they believe the market will crash further.

If the sell-off does not stop, Cardano price could visit the $0.419 to $0.434 support floors. These barriers could potentially pause the ongoing bearish momentum and give holders an opening for a much-needed relief rally.

ADA/USDT 1-day chart

ADA/USDT 1-day chart

On the other hand, if Cardano price manages to undo the losses seen over the last four days, it will signal a resurgence of buyers. However, if ADA can flip the range high at $0.609 into a support floor, it will invalidate the bearish thesis.

In such a case, Cardano price could attempt an upswing to $0.749.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

More from Akash Girimath
Share:

Editor's Picks

XRP retreats as ETF interest cools
Ripple (XRP) slides toward the short-term $1.10 support on Friday, as broader crypto market sentiment weighs on crypto assets. The sell-off mainly stems from fears of inflation in the United States (US) amid the ongoing war in the Middle East and rising Oil prices.
Crypto Today: Bitcoin, Ethereum, XRP pare losses as breakout potential builds
Bitcoin (BTC) is edging higher on Friday, albeit gradually, after reclaiming support above $65,000. Meanwhile, Ethereum (ETH) shows signs of stability near the immediate $1,900 hurdle, backed by mild capital inflows. Ripple (XRP), on the other hand, holds above the pivotal $1.10, with its upside structurally constrained below $1.15.
Bitcoin Weekly Forecast: BTC holds firm, but the $100 Oil threat could change the game
Bitcoin (BTC) is modestly recovering, trading at $65,400 on Friday and holding firmly above the key support zone. US-listed spot Bitcoin Exchange Traded Funds (ETFs) supported BTC’s modest recovery as they continued to attract institutional inflows through Thursday, pointing to the third consecutive week of inflows.
Crypto shrugs off a stronger Dollar
Cryptocurrencies have been affected by jitters in traditional financial markets, losing 0.8% of their market capitalisation over the past 24 hours to $2.23T, dipping to a low of $2.21T at the start of active trading in Asia.
Bitcoin: BTC holds firm, but the $100 Oil threat could change the game
Bitcoin (BTC) is modestly recovering, trading at $65,400 on Friday and holding firmly above the key support zone. US-listed spot Bitcoin Exchange Traded Funds (ETFs) supported BTC’s modest recovery as they continued to attract institutional inflows through Thursday, pointing to the third consecutive week of inflows.