Flash Crash Sends Cardano (ADA) Barreling Downwards To A $2 Retest
September 07 2021 - 12:30PM
NEWSBTC
Cardano (ADA) has not been left out of the massive flash crash that
just occurred throughout the market. What seemed to be a good day
for bitcoin as El Salvador’s “Bitcoin Day” began has now turned to
nothing short of a nightmarish market opening. The crash saw
bitcoin drop $6K in only a matter of hours. While the general
altcoin markets have recorded crashes as high as over 20% in the
same timeframe. With altcoins following bitcoin closely, the price
of the ADA shows similar movement patterns to BTC following the
flash crash. The number 1 crypto coin fell to the mid-$40K, taking
the whole of the market down with it. Related Reading | IOG
Denies Rumors About Cardano Smart Contracts Platform The flash
crash has taken the market by surprise, given that general
sentiment is positive and the Fear & Greed Index putting the
market in “Extreme Greed”. There’s currently no exact reason
pinpointed for this crash. Although massive liquidations to the
tune of almost $1 billion across the crypto market look to be the
culprit. The liquidated positions being mostly long positions.
Crash Puts Cardano (ADA) In Chokehold Struggling alongside the
other cryptocurrencies is Cardano (ADA). The asset had long left
behind the $2 price point since mid-August, with indicators
pointing towards a pathway to $5 following upgrades. But with the
current flash crash, the digital asset lost over 18% of its value.
This set it on a downward trend that saw ADA hitting the low $2s
for the first time in three weeks. Related Reading | New To
Bitcoin? Learn To Trade Crypto With The NewsBTC Trading Course Even
though Cardano (ADA) has seen an upward correction that sent it
towards mid-$2, the price is still maintaining a struggling pace.
Trend lines in the asset show a sideways zig-zag, up and down
pattern. Depicting numerous dips and recoveries in just the past
hour alone. Starting the early hours of the morning was ADA at
$2.75. A bit shaky but was holding on tight to this price point.
Flash crash sends ADA price to three-week lows | Source: ADAUSD on
TradingView.com At this junction, it is still too early to tell how
much recovery ADA will make in the hours following the flash crash.
It has so far recovered about 6% of value lost during the crash,
with indicators pointing towards total recovery. As of the current
time of writing, Cardano (ADA) is still trading low at a price of
$2.45 according to Coinmarketcap, with a 24-hour price change of
13.46%. Featured image from Currency.com, chart from
TradingView.com
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