Cardano Price Analysis: Will $0.45 Support Hold Strong Amid the Market Sell-off?

Sahil Mahadik
Updated
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Cardano price

Highlights

  • The ADA price correction extending to the 61.8% FIB reflects some weakness in buyers' conviction. 
  • The potential rebound in the Cardano coin may face high demand pressure at  $0.52.
  • The intraday trading volume in the ADA coin is $574.6 Million, indicating a 40% loss

The recent weekend saw a significant sell-off in the cryptocurrency market, with layer 1 blockchain Cardano bearing a substantial impact. The asset witnessed a steep decline from its new lower high of $0.624 to the $0.45 level, marking a 30% drop over the week. Amid fluctuating market sentiment and the approach of the much-awaited Bitcoin halving, Cardano’s price is striving to maintain its footing above the $0.45 threshold.

Also Read: BDAG Shines as Bitcoin Price Stumbles & Cardano Innovates

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Cardano’s V-Top Reversal Signals Seller Control Amid Market CorrectionC

BINANCE:ADAUSDT Chart
Cardano Price Analysis| Tradingview

Amid the broader market correction, the Cardano price developed a V-top reversal from the high of $0.81 in mid-March. This pattern representing complete dominance of sellers plunged the ADA value 45% to trade at the $0.449 mark.

The aforementioned support coinciding with the 61.8% Fibonacci retracement level creates a high demand zone for ADA buyers. The renewed buying pressure is evidenced by the tail rejection in the daily candle of April 13th, holding the price above $0.449. 

The sidelined buyers can monitor this asset for the week and check its sustainability above the horizontal level. Furthermore, for buyers to regain a better confirmation for recovery, they reclaim the 20-day EMA around the $0.52 mark.

This breakdown would signal a reversal opportunity for the Cardano coin, but for momentum trading the ADA price should challenge overhead resistance at $0.56 to $0.625.

However, the crypto analytics firm Santiment reports a growing trader focus on Bitcoin, especially regarding holding strategies amid market downturns following the Bitcoin halving. As altcoins falter, the attention is turning towards Bitcoin’s stability and fiat liquidations amidst rising market FUD.

Thus, the top altcoins inducing Cardano may face a delay before joining the post-halving market rally.

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Technical Indicator:

  • Directional Movement Index: The wide spread between the DI+ and DI- slope accentuates an aggressive correction trend in action.
  • Exponential Moving Average: The 20-day EMA acts as dynamic resistance against the occasion of bullish bounces in ADA price.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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