Over the past four months, Cardano (ADA) quotes have fallen dramatically. Its price has fallen 50% since its peak in March and another 60% before stabilizing somewhat in mid-July. Such a sharp decline is indicative of the continued negative sentiment in the market.
While #ADA has shown some recovery recently, its price is still well below its previous highs, and major trading platforms such as #Binance and OKX continue to see strong selling pressure, as evidenced by rising negative funding rates. These indicators point to a continuation of the bearish trend.
The blockchain data also does not indicate a positive development for ADA at the moment. However, there is some good news: the SEC has clarified that ADAs are not securities. This clarification from the regulator could have a positive impact on the future of ADA.
the meantime, technical indicators are casting a gloomy shadow on ADA. Prices recently fell 4.6% to $0.385 and are at risk of falling further if the current market conditions persist.
However, the ADA chart shows a series of lower highs and lows, and the price is trading below the 50- and 200-day exponential moving averages (EMAs). The key support level is around $0.30, and if the bearish camp prevails, ADA could fall to the yearly low of $BTC Despite the bearish bias, some analysts see the potential for a rebound. The Santiment Report indicates a recent jump in the negative funding rate, which may indicate oversold conditions.
Such situations historically lead to a sharp recovery, as sellers are forced to buy back shares at higher prices. However, caution should be exercised when using this strategy, as prices may continue to fall if the market deems ADA oversold.
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