Recently, the Cardano (ADA) exchange rate tried to break through the $0.80 mark, but failed. Since then, the price has rolled back and cannot recover in any way, which causes concern and pessimism among investors
We are looking into what is happening with Cardano (ADA) and how real the risks of further decline are.
Cardano's liquidity concentration is decreasing
According to Coinglass, the liquidation map is one of the key indicators suggesting that the price of $ADA
may decrease. This map shows the price levels at which mass liquidations can occur, and also identifies price zones with a high concentration of liquidity.
The Cardano liquidation map shows that the concentration area has shifted to $0.69. This means that the asset price may roll back from current levels to $0.69 in the near future. In general, this forecast is consistent with market conditions.
The drop in ADA trading volume also hints at a potential price drop. This figure has decreased from almost $6 billion on November 16 to $1.78 billion today. This means that the market's interest in Cardano is falling.
The combination of the two factors described above increases the likelihood of the cryptocurrency falling in the near future.
ADA Forecast: Next stop is $0.63
At the time of writing this analysis, ADA is trading at $0.7271, having not shown any strongly directional dynamics in the last 24 hours. Nevertheless, over the past seven and 14 days, cryptocurrencies have increased in price by 27% and 119%, respectively.
The daily chart (attached below) shows that the distance between the Bollinger Bands (BB) is increasing. This technical indicator helps to measure the level of volatility of the cryptocurrency, as well as the degree of its overbought/oversold.
In the case of Cardano, the location of the indicator suggests that the rate is in danger of a drawdown below $0.68. If the selling pressure increases further, the altcoin may fall in price to $ 0.63.
Under favorable conditions, however, ADA will get a chance to climb to the $0.82 mark. This will happen if the activity of buyers increases, and investors prefer to hold assets rather than sell them.
