Cardano (ADA) Sheds 15% Of Value In Last 7 Days – When Will The Pain Stop?
Cryptocurrency investors have been keeping a close eye on Cardano lately. One Reddit user noted that the current rate of price change is the slowest since January of 2021. Coingecko reports that the value of Cardano has...
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Cryptocurrency investors have been keeping a close eye on Cardano lately. One Reddit user noted that the current rate of price change is the slowest since January of 2021.
Coingecko reports that the value of Cardano has dropped by 15% over the past two weeks and 24% over the past month.
In spite of the introduction of the Vasil update, ADA was unable to gain traction and stage a comeback. Currently, ADA is trading at a positive $0.3673. However, it’s possible that this is a single green blip amidst a sea of red.
Investors in Cardano tokens are in a difficult position as the network continues to shed value: should they hold on to their holdings or sell some to stem the bleeding?
Crossroads: Keep Or UnloadAt the time of writing, token indications are very pessimistic. Based on the bull-bear power indicator, it appears that the market is now trending downwards.
However, the lows of Chaikin’s money flow index are in line with the lows of March, putting it close to the bull and bear barrier.
Chart: TradingViewThe Stoch RSI is likewise in oversold zone, indicating that the majority of investors are riding the sell-off wave on the bears’ side.
This gloomy market sentiment will undoubtedly hinder Cardano’s chances of recovery. Current macroeconomic factors drag the cryptocurrency along with the rest of the financial sector.
Bears are also challenging the lower Bollinger band, which exerts significant downward pressure on the coin.
Sell Everything Now?Currently, the coin is trading between $0.3500 and $0.5946, and similar to the indicators, the broader outlook for Cardano is not favorable.
As ADA attempted to recover from one of the most violent downtrends in Cardano’s history, a far stronger and more pronounced slump developed even before the current sell-off.
From the already available market data, we may conclude that the Vasil update failed to address investor confidence.
The 20-day and 10-day exponential moving averages serve as dynamic resistance levels for the cryptocurrency.
The current support is located around the 61.80 Fibonacci retracement level, which is about $0.3535. The latest charts, however, indicate that the token may return to around the 78.60 Fib level, which is currently located around $0.3771.
In the following days or weeks, the Cardano token is likely to fall more as Cardano struggles to maintain stability.
ADA total market cap at $12.6 billion on the daily chart | Featured image from Monex Securities, Chart: TradingView.com Disclaimer: The analysis represents the author's personal views and should not be construed as investment advice.Why this matters
This altcoin story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
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