After peaking at $0.80, Cardano has fallen by 66%. Let’s take a look at the future prospects of ADA together.
Cardano (ADA) Price Status
After reaching a low below $0.24, Cardano was carried by the entire crypto market and reached the $0.68 level in two months. At this price level, we can see that Cardano contracted to $0.45. It was on this last support level that ADA relied to subsequently mark its highest level since May 2022 at $0.80. All of these fluctuations allowed Cardano to appreciate by more than 235% in four months. Unfortunately, this resistance level triggered a bid that brought ADA back to its support at $0.45. Although there was notable interest, Cardano's price continued to decline little by little, recently reaching a low point around $0.28. It should be noted that this downward pressure was fueled by the overall decline in the crypto market.
ADA seems to have shown some buying support recently, allowing the crypto to reach $0.40. At the time of writing, Cardano’s price is trading around $0.32. Thus, it seems that ADA is struggling to find buying support. As for the crypto’s trend, it can be said that it is currently bearish, as evidenced by the Dow Theory and the 50-day and 200-day moving averages, both of which are trending downward. As for the crypto’s momentum, it is not surprising that it is bearish, as evidenced by Cardano’s price itself. However, it can be noted that the oscillators are gradually diverging from the crypto’s price.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Now a trainer at Family Tradinga community of thousands of self-employed traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and friendly atmosphere.
Focus on derivatives (ADA/USDT)
Following Cardano’s decline, the open interest of ADA/USDT perpetual contracts increased slightly before falling back, as did its price. This happened while the CVD was revised downwards. On the funding rate side, we see a slight increase during Cardano’s last bullish impulse, but it quickly declined after the current correction. All these indicators show predominant selling pressure on Cardano derivatives. As for liquidations, they are mostly on the buyer side, occurring during small downward movements. This indicates a low tolerance for downside on the part of buyers.
The heatmap of ADA/USDT liquidations over the past three months reveals that Cardano recently reached a notable liquidation zone, located around $0.31. This seems to have triggered buying interest in the crypto, with Cardano’s price rebounding slightly. Now, the liquidation zones closest to the crypto’s current price are mostly above its price. A small area can be noted below $0.37. Higher and more significant areas can be noted above $0.40 and $0.45. As the price approaches these levels, it could trigger a massive trigger of orders, increasing the risk of a period of increased volatility for the crypto. These areas therefore represent crucial points of interest for investors.
Cardano (ADA) Price Prediction
- If the Cardano price holds above $0.30, we could anticipate a bullish continuation, with a break above $0.40. The next resistance to watch would be around $0.45. If this bullish movement continues, reaching $0.50 could be possible, representing an increase of more than 57%.
- If Cardano price fails to hold above $0.30, a return to $0.28 would be possible. The next key support, in case of a continuation of the bearish movement, would be around $0.24-$0.25, with a risk of a drop to $0.22, a drop of around 30%.
Conclusion
Cardano has seen a significant surge followed by a sharp contraction, reflecting the volatility of the crypto market. While ADA is showing signs of recovery, it remains in a downtrend, with limited buying support and weakened momentum. As such, it will be essential to closely monitor the price reaction at key levels to validate or revise current forecasts. It is also important to remain vigilant against potential market “fake outs” and “squeezes” in each scenario. Finally, let us remember that these analyses are based solely on technical criteria and that the price of cryptocurrencies can also evolve rapidly depending on other more fundamental factors.
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