Cardano’s ADA faced a significant 12% decline in value over the past week, as selling pressure persisted following Bitcoin’s fall below $90K. Not even the acknowledgment of the Grayscale Cardano ETF managed to boost demand, highlighting the macro uncertainty as a major risk factor for the altcoin and the broader market.<\/p>\n
Despite this, there was a small 2% reduction in Bitcoin dominance, potentially providing some relief for altcoins like ADA. So, what does the current price movement suggest?<\/p>\n
As of now, Cardano has dropped by 50% since reaching its peak of $1.3 in December, forming a downtrend channel over several months (depicted in white on the chart). The current price action has revisited the lower end of this channel, which also acts as a bullish order block at $0.69 (potential support level, marked in cyan).<\/p>\n
Nevertheless, the technical indicators are giving conflicting signals. The daily RSI remains below a neutral point, indicating limited demand. On the other hand, the Chaikin Money Flow (CMF) has turned positive, suggesting an increase in buying pressure.<\/p>\n
In simple terms, ADA bulls may defend the range’s lower boundary if Bitcoin shows signs of recovery. Conversely, a sustained sell-off could pull ADA down to $0.56, the first significant support zone following the post-US election rally.<\/p>\n
The reduced speculative interest in ADA is also evident in the Futures market. Within just a month, speculative interest in the altcoin has plummeted by over 60%, from $1.48B in January to $555M currently, indicating that investors are pulling out of derivative markets \u2013 a bearish sign.<\/p>\n
From a liquidity standpoint, there are four crucial liquidity zones (highlighted in bright yellow) that traders should monitor, which are located at $0.78, $0.75, $0.7, and $0.62.<\/p>\n
The $0.78 level aligns with the mid-range level of the channel, while $0.62 corresponds with the lower boundary of the range. In the event of a liquidity sweep, ADA’s price could oscillate between these essential levels, particularly if Bitcoin fails to establish a clear trend.<\/p>\n","protected":false},"excerpt":{"rendered":"
Will ADA Price Bounce Back or Drop to $0.56? Cardano’s ADA faced a significant 12% decline in value over the past week, as selling pressure persisted following Bitcoin’s fall below $90K. Not even the acknowledgment of the Grayscale Cardano ETF managed to boost demand, highlighting the macro uncertainty as a major risk factor for the<\/p>\n","protected":false},"author":1,"featured_media":41708,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-41707","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-50","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/41707","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/comments?post=41707"}],"version-history":[{"count":2,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/41707\/revisions"}],"predecessor-version":[{"id":41710,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/41707\/revisions\/41710"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/media\/41708"}],"wp:attachment":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/media?parent=41707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/categories?post=41707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/tags?post=41707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}