Cardano Price Correction to Extend 7% this Week, But There’s a Catch

Cardano Price: ADA, the native cryptocurrency of the Cardano ecosystem, has witnessed notable supply pressure since last week leading to a price fall from $0.81 to $0.61. The broader market correction bolstered this 23.2% drop triggering a breakdown from 23.6% Fibonacci retracement. Will the BTC price breakdown below the $65K psychological level further accelerate this correction trend?

Also Read: Cardano Price Analysis: Recent Downturns Spark Investor Interest, Will ADA Hit $1?

Cardano Dominates in Developer Commitment Amid Market Volatility

The mid-term trend in Cardano price is actively bullish and can be traced using a rising channel pattern in the daily chart. This chart setup formed with two ascending trendlines uplifted the ADA value from $0.24 to $0.81, registering 283% growth.

Recent data tweeted by IntoTheBlock highlights a significant trend in blockchain development activity, placing Cardano (ADA) at the forefront among top Layer 1 (L1) protocols. The platform has reported that Cardano consistently outperforms its peers in terms of weekly commits on their repositories, a measure often used to gauge developer engagement and project vitality.

Cardano is leading in developer activity amongst top L1s, consistently delivering the highest number of weekly commits. pic.twitter.com/gtYUIyeqRy

— IntoTheBlock (@intotheblock) March 18, 2024

However, the overhead supply at $0.8 coupled with the broader market correction, sparked a new correction and plunged the ADA price to the $0.62 mark. If the supply pressure persists, the sellers may extend this downfall, another 7% to retest the lower trend at $0.57.

If history repeats, the Cardano coin is likely to rebound from this support and initiate a new bull cycle within the channel pattern. With sustained buying, the post-correction rally may surpass the $0.81 barrier, registering a growth potential beyond 30%.

Conversely, a breakdown below the pattern’s support trendline will invalidate the bullish thesis, and prolong the current correction trend.

Also Read: Charles Hoskinson Addresses Cardano FUD Amid World Mobile Partnership

Technical Indicator:

• Moving Average Convergence Divergence: A negative crossover state between the MACD(blue) and signal lines(orange) reflects the short-term trend is bearish. 
• Exponential Moving Average: The ADA price trading above the 100-and-200-day EMA slope indicates the long-term trend is bullish.