Cardano’s ADA price has dropped by 4.5% in the last 24 hours, trading around $0.351 during European trading hours. This decline has invalidated the previous bullish pattern on the Cardano chart.
Key resistance levels to watch are $0.46, $0.54, and $0.60. Despite the recent drop, investors remain optimistic about ADA’s long-term performance. However, if Bitcoin (BTC) does not show positive movement, ADA bulls may struggle to prevent further price declines.
ADA Price Analysis: Recent Drop and Future Outlook
Last week, ADA’s price was rising as traders anticipated a breakout from a falling wedge formation. However, Bitcoin’s downward movement invalidated this breakout, causing ADA’s price to fall to $0.3165. Following this drop, ADA rebounded by 18% to test $0.37 but struggled to break through this new resistance zone.
Currently, ADA’s Relative Strength Index (RSI 14) is at 37, which is 7 points above the oversold region but still below the RSI moving average. If ADA faces further selling pressure, it may enter the oversold zone, leading to high volatility. Conversely, if ADA can overcome the negative impact from Bitcoin, its price could potentially rise by 43% to reach $0.62.
Key resistance levels to watch are $0.46, $0.54, and $0.60. If the bears take control, ADA’s price might fall to $0.24, with key support levels at $0.336 and $0.28.
ADA Market Sentiment and Upcoming Developments
Despite recent price trends, Coinalyze data reveals a total LONG/SHORT ratio of 2.35 for ADA, indicating that 70% of investors are holding long positions while 30% are short. This suggests a strong optimism among market participants about ADA’s long-term prospects, with many viewing the current low prices as a buying opportunity.
The Cardano team remains focused on advancing the network’s ecosystem amid these price fluctuations. A notable upcoming development is the Chang hard fork, scheduled to occur in a few weeks. This hard fork will grant ADA holders voting rights, introducing community governance to the Cardano blockchain.
Additionaly, Cardano is poised to make significant strides in real-world asset collaboration, including a potential partnership with the Nairobi Securities Exchange (NSE).
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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