Cardano’s price has taken a steep downturn recently, with the potential for an 18% plummet from current levels. After a brief recovery attempt that took Cardano up to $0.68, intense selling pressure swept back in and sent the price plunging to $0.56 on Monday.
The technical picture is looking increasingly bleak for Cardano. The Relative Strength Index (RSI) shows sellers are firmly in control at the moment, while the Moving Average Convergence Divergence (MACD) indicator is on the cusp of flashing a sell signal. This would likely exacerbate the selling momentum.
To make matters worse, Cardano is struggling to hold above the 20-day Exponential Moving Average, which has been acting as critical near-term support. A decisive break below the 20-day EMA around $0.443 could trigger a major breakdown, paving the way for a drop to the 50% Fibonacci retracement level at $0.46.
However, a couple of factors could prevent Cardano from seeing the full 18% decline to $0.46 play out. First, Cardano could swiftly rebound and reclaim the 23.6% Fibonacci level. This would shift the momentum back to the bulls. Second, if Cardano’s price manages to stabilize around the 20-day EMA rather than breaking below it, that could also halt further downside.
If bulls can build on one of those near-term supports and push Cardano back above the 23.6% Fibonacci, the prevailing market view on ADA would likely turn bullish again. Traders may start anticipating a march back toward the key $1 level. This would be an impressive show of strength from a crypto asset that has already dramatically outpaced rivals like XRP so far in 2023.
#Cardano #ADA #Cryptocurrency #Altcoins #DeFi #CryptoTrading #CryptoNews
