Share:
  • Cardano price is sitting on shaky grounds as it trades around $0.619.
  • Investors can expect ADA to crash 35% to retest a stable support level at $0.397.
  • A three-day candlestick close above $0.677 will invalidate the bearish thesis.

Cardano price has been on a massive downswing while all the altcoins were rallying. The recent bearish onslaught has made things worse for ADA holders but a further move to the downside is yet to come.

Cardano price fails to establish support

Cardano price has been on a 35-week downswing since its all-time high at $3.11 in September 2021. This tiresome downtrend seemed to have caught a break in March when ADA rallied 60% and set a higher high at $1.24.

However, the bears had other plans and pushed Cardano price back into a downtrend. The recent market crash has only added to ADA’s woes. As the so-called “Ethereum-killer” trades around $0.619, investors need to note that this is not the base.

The immediate stable support for Cardano price is at $0.397, which is roughly a 35% crash away from the current position. Adding credence to this downswing is the inefficiency of the price during its rally in early 2021.

Therefore, if investors are looking to buy the dip, it would be around $0.397. A crash to this level will exhaust the sellers, allowing buyers to scoop ADA at a discount.

ADA/USDT 3-day chart

ADA/USDT 3-day chart

Further adding credence to the bearish outlook for Cardano price is the recent decline in the number of wallets holding between 100,000 and 1,000,000 ADA tokens. This category of investors has been offloading their tokens and their numbers have dwindled from 22,807 to 21,100 since March 11.

This 7.9% drop indicates that these investors are selling their tokens and are not bullish on ADA yet.

ADA supply distribution 

ADA supply distribution 

Regardless of the bearish outlook, a three-day candlestick close above $0.677 will reclaim a crucial level and flip it into a support level. This development alone could trigger a buying spree and invalidate the bearish thesis by flipping the $0.785 hurdle. In such a case, Cardano price could rally higher and tackle the $0.900 barrier.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Bitcoin likely to remain in red through the next quarter if history is any indication

Bitcoin likely to remain in red through the next quarter if history is any indication

Bitcoin (BTC) price produced a monthly close at $27,210, noting a -6.92% return for May. The last-minute slide in BTC put an end to the four-month bullish streak that kickstarted the 2023 rally.

More Bitcoin News

Ethereum vs. SEC: Implications of Wahis’ insider trading settlement on ETH

Ethereum vs. SEC: Implications of Wahis’ insider trading settlement on ETH

Ethereum (ETH) is the subject of a new controversy, with the second-largest crypto finding itself in the rut after the United States Securities and Exchange Commission (SEC) settled its insider trading case against the Wahi brothers.

More Ethereum News

Justin Sun’s TRON hits all-time high of 10.9M daily transactions, braving crypto winter

Justin Sun’s TRON hits all-time high of 10.9M daily transactions, braving crypto winter

Justin Sun, the founder of TRON – one of the largest decentralized blockchain DAO ecosystems in crypto – shared a new milestone for the token on Thursday. TRON processed 10.9 million in daily transactions, hitting a record high.

More Cryptocurrencies News

Ethereum fees decline by 70% from 2023 highs as top DeFi protocols lose users

Ethereum fees decline by 70% from 2023 highs as top DeFi protocols lose users

Ethereum is currently facing trouble in the spot market due to the broader market bearishness as well as investors' skepticism. But while the spot market only recently took a turn for the worse, the DeFi space has been only negative for a long time.

More Cryptocurrencies News

Bitcoin: BTC delays inevitable crash to $25,000

Bitcoin: BTC delays inevitable crash to $25,000

Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.

Read full analysis

BTC

ETH

XRP