[Cardano price prediction when ADA plummets 10% in one day]
Although Cardano (codenamed ADA) has experienced significant gains in terms of technological advancement and popularity, it has not escaped the decline that occurred throughout the crypto market at the end of the first week of July.
In fact, ADA's recent decline went against the expectations of technical analysis. At the start of the month, ADA appeared to have formed a falling wedge breakout pattern, which the market expected would propel Cardano up as much as 70% in the near future. However, after a brief rally to close to $0.42 on July 3, ADA entered a sharp decline, hitting a low of $0.3211 on July 5. Despite falling below the recent support area around $0.35, Cardano has avoided a free fall and recovered to $0.34459 at the time of writing.
Still, ADA remains in peril given the rather strong downward trend in the crypto market as a whole, which has seen multiple other coins post significant losses in recent days. The bearish sentiment is further reinforced by Cardano’s overall performance in recent weeks. In fact, the coin has closed higher on just 12 of the last 30 days and is trading well below its 200-day simple moving average (MA) at $0.536241.
Furthermore, unlike other major cryptocurrencies such as Bitcoin, which managed to avoid significant declines even though it failed to hold near its March highs, ADA only briefly paused after reaching highs near $0.77 at the beginning of the year, and ended the year in four. It steadily fell to prices below $0.50 by mid-month.
Still, the technological advancements and generally positive statistics associated with Cardano can lead to a more optimistic view of its future prospects. In fact, in the past week, the network has released new nodes and a new Lace version, and the number of smart contracts on the Plutus Network has exceeded 62,000.
Finally, even if the more optimistic scenario plays out, Cardano is unlikely to see a stable price break above $0.40 in the short term. It needs to overcome recent resistance near $0.39 first.