Cardano (ADA) has been facing a challenging market environment as the cryptocurrency weakened further amid Bitcoin’s retest of the $25,000 zone. As one of the top cryptocurrencies in terms of market capitalization, Cardano has been closely impacted by broader market trends.
This setback has raised questions about the future trajectory of Cardano and whether the bulls will be able to regain control. Will the recent market weakness provide an opportunity for the bulls to stage a comeback and propel Cardano toward a new upward trajectory?
Cardano Faces Price Volatility As Selling Pressure Persists
Cardano (ADA) currently has a price of $0.282786, experiencing a modest 8.1% rally within the past 24 hours, according to CoinGecko data. However, the cryptocurrency has endured a significant decline of 24.3% over the course of the last seven days.
This decline follows a retreat from ADA’s highest price level in 2023, reaching $0.462 in mid-April, before dropping to lows of $0.221 in December. The coin has since managed to partially recover from the losses.
The technical indicators for the ADA/USD pair show a significant negative trend developing. The recent breakdown below $0.2779, a critical support level, indicates that further selling pressure is possible.
To analyze the price movement, technical indicators such as the Fibonacci retracement tool and the Relative Strength Index (RSI) provide insights. The Fibonacci retracement tool, plotted between the high point in April and the recent low on June 10, indicates the potential levels for ADA’s price movement.
Additionally, the RSI has been consistently below the median point since mid-April, further declining into the oversold zone at the time of writing. This indicates a significant increase in selling pressure and suggests a bearish sentiment.
ADA Price Outlook Depends On BTC And Market Sentiment
The current market conditions for ADA remain uncertain as the cryptocurrency faces selling pressure and price volatility. With increased trading volumes and a decline in price, ADA could potentially be dragged further down to support levels at $0.22 or even $0.164 if the bearish sentiment persists and Bitcoin fails to transition to a bullish trend.
Cardano has a 24-hour trading volume of $595 million, placing it seventh on CoinMarketCap. Cardano’s current market capitalization is $9.3 billion. The circulating supply of this cryptocurrency is 34,903,977,012, while its maximal supply is 45,000,000,000,000,000 ADA coins.
Meanwhile, there is a glimmer of hope for ADA bulls if Bitcoin manages to turn bullish, particularly if the Federal Open Market Committee (FOMC) adopts a dovish stance.
As the cryptocurrency market continues to be influenced by various factors, including market sentiment, Bitcoin’s performance, and global economic events, it remains crucial for investors to stay vigilant and monitor the developments closely.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from The Coin Republic