Cardano’s Price Falling Drastically: Is It Time to Sell ADA?
Cardano has suffered heavy losses in terms of market capitalization but remains on track to release new updates. Since ADA’s core development is devoid of market value, the Altcoin development is on-track.
The recently released Alonzo upgrade has worked wonders on ADA’s fundamental growth. Cardano still holds the 8th position in terms of the market capitalization of $20,930,703,648, with a total liquid supply of $34,277,702,082 ADA tokens.
Its advantage of developing a less energy intrusive Proof of Stake mechanism may work wonders. Whether or not these projections come to life is a different situation altogether. Getting support from institutions could open new scopes for scalability as ADA has been referred to as the next ETH killer. A turnaround of this negative sentiment would require ADA to return above $1 value.
Cardano stumbles below the last bearish market. While the last bear market in 2021 led to a significant decline, the current bear trend has already created a loss more than the previous fall. With no signs of this negative trend stopping, ADA holders are in panic, enforcing further sell-off.
Let’s break down the ADA price prediction, technical analysis, price trends, and critical levels to derive the trend in the coming days.The Cardano’s decline on May 09 of double digits has created severe caution amongst buyers, pushing the price further below. The subsequent candle movement for one day has been inconclusive since May 10 price remained between the highs and lows, indicating a lack of conviction.
But on the other hand, May 11 price trend has been moving back down to touch the similar low values of the previous two days. On closer look. $0.58 looks like an immediate support level for the short term.
As day moved forward, ADA enthusiasts have shown the sentiment of acquiring more tokens, proven by the huge rise in transaction volumes. RSI also has taken a V-shaped recovery in the last two days.ADA’s fall from the current consolidation level was indicated long ago, as the falling prices challenged previous support levels. The next jump to retest the 200 DMA curve resulted from a discounted value, but profit booking at higher levels again pushed back ADA’s price.
$1.173 to $1.676 was a consolidative level last year, but a breach of this value has created a strong rejection for coming uptrends.
If ADA retakes the level of its all-time high value of $3, it will deliver significant profits. Declining prices will have one last support level at $0.388. However, it seems ADA could bounce back before retesting the breakout levels of 2021.