Cardano (ADA) Struggles to Maintain Top 10 Crypto Rank: The Crucial Role of the $0.43 Price Level

  • Cardano’s ADA token is testing a critical support level, with a failed attempt potentially leading to a further price decline.
  • The token has seen a decrease of over 4% in the last seven days.
  • Most metrics and indicators suggest that ADA might fail to test its support, putting its position in the top 10 cryptocurrencies at risk.

Cardano’s ADA token is at a critical juncture, with a potential failure to test its support level possibly leading to a further price decline. This article delves into the factors contributing to this scenario and its potential implications.

Cardano’s Critical State

Like most cryptocurrencies, ADA’s weekly chart is in the red, with the token’s price dropping by more than 4% in the last week. In the last 24 hours alone, Cardano has witnessed a 1.6% price drop. As of writing, ADA is trading at $0.4383 with a market capitalization of over $15.6 billion, making it the 10th largest cryptocurrency. However, this top 10 spot might be at risk as the token’s price is sitting at a crucial support level.

Will ADA Test Its Support?

Analysis of ADA’s daily chart reveals that the token is just about to reach its support level of $0.4353. The token has already touched this support twice in the past few weeks, each time managing to successfully test it and bounce back. If the same happens on this occasion, then ADA might approach its resistance near $0.51. However, if it fails to test this level, then things can get dangerous.

Analysis of Santiment’s data shows that ADA’s MVRV ratio dipped last week. After the increase, whale activity around the token also declined. Cardano’s NVT ratio spiked, meaning that it was overvalued, which hinted at a further price drop. Additionally, its Weighted Sentiment declined, meaning that bearish sentiment around the token was dominant in the market. These metrics suggest that the possibility of ADA plummeting under its support is high.

Technical Indicators and Future Outlook

Technical indicators show that ADA’s price is resting under its 20-day Exponential Moving Average (EMA). Both its Chaikin Money Flow (CMF) and Relative Strength Index (RSI) registered downticks. The Money Flow Index (MFI) also started to decline, indicating that it was much more likely for the token to go under its support. Nonetheless, the MACD provided much-needed hope as it showed that bulls were still leading in the market.

Conclusion

If ADA fails to test its support, Cardano’s price might first fall to $0.41. At that level, ADA will have an opportunity to rebound. However, the current metrics and indicators suggest a high possibility of a further price drop. Investors must remain cautious and monitor the situation closely.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.
spot_imgspot_imgspot_imgspot_img

Latest News

spot_imgspot_imgspot_imgspot_img

PRO Analysis

FTSE 100 Index Analysis: Key Insights for May 30, 2024 – Market Trends and Projections

Cryptocurrency markets have been experiencing...

AI Predicts 2024 End-of-Year Surge for XRP and SHIB Coins: Expert Analysis Inside!

The crypto markets have been a rollercoaster...

Crypto Market Daily: BTC, ETH, NOT, AR, XRM Price Analysis and Trends

Cryptocurrency markets witnessed significant volatility today, with...
Gideon Wolf
Gideon Wolfhttps://en.coinotag.com/
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.
spot_imgspot_imgspot_imgspot_img

ETH, SOL, XRP, DOGE, & PEPE Prices Plummet: Crypto Market Faces Major Selloff Amid Waning Sentiment

The recent crypto market selloff has sparked discussions in the crypto market. The altcoins were among the laggards, with ETH, SOL,...

Massive 60,000 ETH ($ETH) Purchase on Binance Sparks Community Frenzy Ahead of Suspension

The cryptocurrency market has been buzzing with activity as an unknown whale recently made a significant purchase of Ethereum (ETH). This...

Crypto Analysts Predict Bright Future for Altcoins: In-Depth Insights on Ethereum (ETH) and Cardano (ADA)

The cryptocurrency market is witnessing a significant shift in investor sentiment. Analysts are observing a growing preference for established cryptocurrencies over...