New York, NY – The recent market volatility has caused Cardano (ADA) to experience a drop of over 4% in the last seven days, leading to concerns among investors. It appears that ADA may struggle to maintain its position in the top 10 cryptocurrencies list due to this significant price decline. The token is currently teetering on a crucial support level, with potential consequences if it fails to hold above it.
ADA’s weekly chart shows a red trend, indicating a 4% price decrease, with a further 1.6% drop in the last 24 hours. At the time of writing, ADA was trading at $0.4383, making it the 10th largest cryptocurrency with a market capitalization exceeding $15.6 billion. However, the token’s ranking in the top 10 may be at risk if it fails to maintain its current support level.
Analysis of ADA’s daily chart suggests that the token is approaching a critical support level of $0.4353, which it has tested twice in recent weeks. Each time, ADA managed to bounce back from this level. If history repeats itself, ADA could potentially reach a resistance level near $0.51. However, a failure to test this level could signal further downside risk for the token.
To gauge the likelihood of ADA testing its support and rebounding, market data and indicators were analyzed. Recent data from Santiment revealed a decrease in ADA’s MVRV ratio, coupled with declining whale activity around the token. Additionally, Cardano’s NVT ratio spiked, indicating overvaluation and suggesting a potential price drop. The Weighted Sentiment for ADA also declined, indicating prevailing bearish sentiment in the market.
Technical indicators for ADA show that the token’s price is currently below its 20-day Exponential Moving Average (EMA). Both the Chaikin Money Flow (CMF) and Relative Strength Index (RSI) have signaled downturns, while the Money Flow Index (MFI) has started to decline. Despite these bearish indicators, the MACD suggests that bulls may still have some influence in the market.
Looking ahead, if ADA fails to test its support level, there is a possibility that the token’s price could drop to $0.41. At that point, ADA may have an opportunity to rebound, according to analysis by Hyblock Capital. The volatility in the market indicates uncertainty for Cardano’s future price movements, leaving investors cautious about the token’s performance.