The sudden 10% decline in Cardano’s price has taken the cryptocurrency community by surprise, raising concerns among investors.
With bearish momentum gaining strength, ADA could potentially dip further to test its support level, pushing its price below the $0.6 mark.
A decrease in whale activity of 8.24% in the past 24 hours has contributed to the downward pressure on ADA, indicating a lack of confidence among major investors. Will this downtrend lead to more losses for ADA?
ADA’s Bearish Trend Deepens
Following the recent price drop, ADA finds itself in a vulnerable position. Technical indicators are signaling bearish trends, hinting at a potential further dip to test its support level.
This pattern usually indicates a continuation of the current bearish trend, raising concerns about ADA’s future price movements.
If the current support fails, ADA may witness a drop below $0.6, a price point it has not reached in months. Additionally, the reduced whale activity further worsens ADA’s bearish outlook.
Institutional investors, who often influence markets, have scaled back their trading activities, suggesting a lack of demand at current price levels. This could escalate selling pressure and drive prices down even more.
Can the Support Level Provide Some Relief?
The support at the flag level is critical. A breach at this price point could trigger a cascade of sell orders, leading to further declines in ADA’s price.
Historically, breaches at such levels have resulted in significant price drops, and ADA is unlikely to be an exception.
Market participants are closely observing the psychological barrier of $0.6, as breaking below this level could pave the way for additional losses.
While there is a possibility of consolidation and recovery if the key support holds, the prevailing market sentiment and reduced whale activity suggest that a quick turnaround for ADA is unlikely.