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Highlights
- The confluence of technical support at $0.56 high area of interest for crypto buyers.
- The ADA price breakdown below the 100-day EMA reflects the mid-term trend is shifting bearish.
- The intraday trading volume in the ADA coin is $269 Million, indicating a 47% gain.
ADA, the native cryptocurrency of the Cardano ecosystem recently reverted from the $0.68 level amid the broader market correction. This lower high formation in the daily chart indicates the traders are selling on a bullish bounce which tumbled the ADA value 17.8% within a fortnight. Moreover, the declining price now challenges the key support of the H&S pattern and long-coming support together, indicating a pivotal moment for the Cardano price.
Also Read: ChatGPT Price Predictions For Cardano and NuggetRush
Whale Inactivity Signals Possible Breakdown and Losses
The mid-term trend in Cardano price is still bullish evidenced by the ascending trendline in the daily chart. The coin price rebounded several times from this dynamic support indicating the investors actively accumulate at market dips.
However, the ADA price entered a new correction in mid-March as the price revered from $0.8 resistance. Within a month, the asset lost 28% in value and plunged to $0.567 support. An analysis of the daily reveals this bearish pullback as the formation of a head and shoulders pattern—a chart setup commonly spotted at market tops and hints at the potential of upcoming correction.
The Cardano coin is currently trading at $0.58 and is hovering just above the combined support of the ascending trendline and H&S pattern neckline.
Moreover, the Renowned trader Ali (@ali_charts) highlighted a decrease in Cardano (ADA) whale activity on Twitter, indicating a possible phase of price consolidation or a potential drop. This observation is key for traders and investors, signaling a time to watch ADA closely for the market’s next move.
#Cardano is experiencing a lull in whale activity, signaling potential for further $ADA price consolidation or an impending drop. pic.twitter.com/EXPafRamLB
— Ali (@ali_charts) April 5, 2024
Also Read: 4 Under $10 Crypto To Buy To Flip $50 Into $5000 In April
Will ADA Price Lose $0.5 Support?
Amid the market correction and decrease in whale activity, the Cardano price is more inclined towards a prolonged correction. Thus, a breakdown below this support will mark a major loss for buyers which may accelerate the supply pressure.
The post-breakdown fall may tumble the altcoin 18% to hit $0.46, followed by $0.33.
Conversely, a reversal pattern at $0.567 would weaken the bearish thesis and set the ADA price for a renewed recovery trend.
Technical Indicator:
- Vortex Indicator: A negative crossover state between the VI(+) and VI(-) reflects an active correction trend.
- Exponential Moving Average: A bearish crossover between the 20- and 50-day EMA slope strengthens the selling pressure in the market.
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