Even when the market was pumping this year, ADA holders weren’t particularly happy.
Cardano price is now around $0.3, down over 20% this week. As Bitcoin and all other altcoins, ADA felt the current market crash.
Since last November, ADA was trading in a sideways channel, between $0.42 and $0.8. However, since early May, ADA lost the $0.42 support and faced further decline.
ADA Price Analysis
What’s really worrying is that the 200-day moving average is now at $0.5. ADA is currently trading around 40% below this key indicator, which is considered super bearish. When an asset’s price is this far below its 200-day moving average, it often indicates a strong downtrend and lack of buyer interest.
During today’s market crash, ADA price hit the $0.28 level but here the price got oversold and the MACD line then crossed the MACD signal line. Since these indicators, Cardano price bounced to the current $0.32 level.
Source: TradingView
Price is currently trading within a Channel Down pattern. Traders anticipating that the price will stay within this channel can place trades when it moves between the channel’s trendlines. In order for ADA to break out of this channel, it needs to reclaim the $0.42 resistance and flip it into support.
altFINS reports that Short-term trend is Strong Down, Medium-term trend is Strong Down and Long-term trend is Strong Down for ADA, very not promising.
Potential Troubles for ADA Holders
ADA holders may find themselves in a precarious position due to several factors. Firstly, the prolonged bearish trend this summer and inability to maintain key support levels have eroded investor confidence. This lack of bullish momentum could lead to further selling pressure, potentially pushing the price even lower.
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Moreover, the broader crypto market sentiment remains cautious, with many investors shifting towards more established assets or stablecoins during uncertain times. This flight to perceived safety could leave altcoins like ADA struggling to attract new buyers or retain existing holders. If this trend continues, ADA may face increased difficulty in recovering lost ground, potentially leaving long-term holders with significant unrealized losses.
Read also: Dogecoin Price Prediction: Meme Coin Trader Forecasts Drop Before DOGE’s Rally to $1
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The post Why Cardano Holders Are in Big Trouble as ADA Price Dips appeared first on CaptainAltcoin.
