- Cardano has its price on shaky grounds, hovering around the $0.619 value area.
- Enthusiasts can expect the alt to drop 35% and retest the $0.397 stable support barrier.
- A 3-day candlestick closing beyond $0.677 will annul the bearish thesis.
Cardano’s price witnessed massive declines even when other altcoins recorded surges. The latest bearish wave in the crypto space worsened things for ADA investors. Furthermore, the token seems primed for another drop.
ADA Fails to Form Support
Cardano has traversed a 35-week decline since exploring its $3.11 all-time high in September 2021. The extended bearish wave paused during the March sessions when Cardano gained 60% to print the $1.24 higher high.
Nevertheless, bears were against the move, pushing ADA back to downside trends. The latest market plummets added to Cardano’s grief. Though the ‘Ethereum Killer’ explored $0.619, that wasn’t a base. The token’s closest steady support stands at $0.397, nearly 35% lower from its current position. Supporting this decline is the price inefficiency since the early 2021 rally.
Thus, anyone interested in buying the dip might wait for possible drops to $0.397. A massive plummet toward the value area will exhaust ADA sellers. That would allow buyers to accumulate the token at a discounted price, catalyzing upward movements.
Further supporting Cardano’s bearish thesis is the latest drop in wallets with between 100K and 1 million Cardano tokens. These investors have offloaded their assets, the number dwindling from 22.8K to 21.1K since 11 March.
The 7.9% decline shows investors selling their ADA coins, thus yet to exhibit a bullish attitude. Though bulls seemed to step up the broad market at this publication, Cardano’s upside path includes multiple hurdles. The alternative token trades weak on shaky grounds.
A 3-day candlestick closing beyond $0.677 will regain a critical zone and overturn it into a foothold despite the bearishness. Such a development might catalyze a buying spree, invalidating the bearish case by overturning the hindrance at $0.785. That could see ADA rallying to challenge the hurdle at $0.900.
What are your thoughts about Cardano’s trajectory? Feel free to share your views in the comment area below.