Bears Gain

The price of Cardano has gone to bearish heights again following a slight increase in the course of the last two days that got its price up to $0.89. Fortunes later turned in the last 24 hours as the token fell by more than 1%, and it has come down to $0.786, while its trading volume also dropped by more than 10%. With the present trend of decline, Cardano (ADA) is expected to place a test on the $0.805 support level where its current price is trying at.

Cardano/USD price analysis. Source TradingView

It is speculated that if the support does not hold, then an up to 50% crash in the price value of ADA could swiftly follow and push the token’s price downward to $0.38. On the other hand, if there is a 24 hour closing above $1, then it could encourage a fresh increase in price and make the bearish speculations invalid.

The world’s leading cryptocurrency also had a moment of decline. Bitcoin dropped below $39,000, which accounts for up to 2% in decline. Ethereum was not left out as it also had a pullback by up to 1.5% in the dip, but it still managed to stay over its $2,500 benchmark. In the company of Altcoins, Terra suffered the biggest fall yet with a staggering 9% drop. Dogecoin and Ripple both shed 2% each at just $81.10 and $0.73, respectively. On the converse side, Polkadot hiked up by 4% to reach $17.71, while Litecoin increased to $103.07.

ADA Encounters Low Market Valuation on Chart

Cardano’s 24-hour candlestick chart analysis confirmed the newly found drop that started on Friday. ADA price is currently testing the $0.805 support level, and it could be up next for more crashes. The available relative strength index data shows that there is a low market valuation for ADA now at 37.92, coupled with losses of trading volumes, which creates a kind of bearish perspective for the altcoin. It is presently trading in the vicinity of $0.789, and it could go down to around $0.381 if there are more sell-offs within the next 24 hours.

On the side of buyers, they will attempt to increase prices in the direction of the 25-period exponential moving average, which stands at $0.824. Nevertheless, any move over the exponential moving average has remained capped for over four months, which led to a long bearish period. A definite close over the present EMA could give an exciting signal to buyers and then give validation to a push in the direction of $1.