ADA Price Plunges 8%: Bearish Signals Intensify
ADA Price Plunges 8%: Bearish Signals Intensify
The Cardano (ADA) price experienced a significant downturn, falling 8% in the last 24 hours. This drop reduced its market capitalization to approximately $32 billion. The bearish pressure is evident, with ADA declining over 13% in the past 7 days.
Technical analysis reveals a concerning picture. A recent death cross, coupled with a rising Average Directional Index (ADX), confirms a strengthening downtrend. The price currently fluctuates between key support at $0.87 and resistance at $0.95.
Strengthening Downtrend: ADX Analysis
Cardano's ADX has surged to 23.2, a sharp increase from 10.5 the previous day. This indicates a transition from a virtually non-existent trend to a more defined downtrend. The ADX, measuring trend strength (0-100), shows values below 20 signify weak trends, while values above 25 indicate strong trends. ADA's ADX approaching 25 highlights increasing bearish momentum.
Source: TradingView
This significant ADX jump suggests sellers are gaining control. Continued bearish momentum could lead to further price declines.
Bearish Ichimoku Cloud Setup
The Ichimoku Cloud chart for ADA displays a bearish configuration, with the price trading considerably below the cloud. This underscores strong downward momentum. The red cloud (Senkou Span A below Senkou Span B) ahead of the current price suggests continued near-term resistance.
Source: TradingView
The bearish crossover of the Tenkan-sen (blue line) and Kijun-sen (orange line) further strengthens this bearish signal. The price's position below both lines indicates that sellers maintain control.
ADA Price Prediction: Potential Scenarios
ADA currently trades between $0.95 resistance and $0.87 support, following yesterday's death cross. A breach of $0.87 could trigger a test of $0.829 support. Further downside, potentially to $0.76 (a 14.6% decline), could follow.
Source: TradingView
Conversely, a return to the bullish momentum from two weeks ago might lead to a retest of $0.95 resistance. Breaking above this could pave the way for a move towards $1.03, with further potential targets at $1.11 and $1.16.
Disclaimer: This analysis is for informational purposes only and should not be considered financial or investment advice. Market conditions are volatile. Conduct thorough research and consult a professional before making financial decisions.
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