Cardano Slides Below $0.50 Alarming A Danger Ahead
May 28 2022 - 5:00AM
NEWSBTC
Cardano is among the cryptocurrencies with higher impacts due to
significant price slides. Price volatility remains one of the
substantial discouragement and threat of virtual currency. Their
swing in price could go beyond ten times in a single minute. A
positive price move is always a favorable trend for a token and its
investors. However, a price drop could pose a danger for both. The
general crypto markets have been witnessing more downward trend
recently. This has left several tokens on an expected price level
even as some investors make massive sell-offs. Cardano seems to
have entered a state of instability following its critical price
drop. Its slide on Thursday went below its possible support level.
Without any rise in trading volume in the crypto market, Cardano
will suffer more losses. Cardano is now fighting dangerously from
its drop position as it’s beyond the supporting mark. Though it had
a previous market cap ranking as the eighth cryptocurrency, the
token had made a 7% drop in the last 8 hours. The price of Cardano
has now fallen below its $0.50 support mark. Hence, its liquidation
has raised more than $1.40 million from crypto derivatives
exchanges. If the selling pressure increases, there would be a
higher probability of more difficult restoration. Analytical Study
Of Cardano For Support Level ADA’s last 4-hour price chart analysis
depicts a release from a symmetrical triangle. Its Y-axis pattern
for height represents a 33.5% drip for the token as its price falls
below the support level. Using a candlestick close that could
reflect the 4-hour trend would hit below the 50% level of Fibonacci
retracement at $0.45. This will possibly bring the confirmation of
the negative price trend. Where there’s a continuation of the
pattern, ADA could maintain a downward trend that reaches $0.34 or
$0.32. By closely observing its movement on May 12, the token moved
to $0.38. This could eventually become its possible support level
if it makes more downward moves. If there’s continuous trading of
ADA below $0.46, the bears will benefit more. It’s possible to
revert the negative appearance of the price drop for the token.
This would require a break on the resistance barrier using a
candlestick close for 4-hour experimentation. Also, cutting off
some of the supply processes could spike ADA’s number of buying
orders. Hence, the token’s price may reach $0.61 as it moves up.
The crypto market now harbors many uncertainties, doubts, and fear
within the past few weeks. The Fear and Greed Index report shows
increased levels of negativity within investors and other
participants in the crypto market. Following the technical and
on-chain indicators, there could still be hope for Bitcoin. This is
because the token is yet to get a fully blown negligence from
participants. Featured image from Pexels, chart from
TradingView.com
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