April 17, 2024

Cardano Technical Analysis on May 28

Cardano is one of the cryptocurrencies that has suffered the most from major price drops. There is still a lot to deter people from using virtual currency because of the volatility of the prices. Their value can fluctuate ten times in one minute. When a token’s price rises, it is always good for investors and token holders alike. On the other hand, a price decline may put both in jeopardy.

Cardano’s Trend

Recently, the broad cryptocurrency markets have been on a downward trend. Several coins are now trading at predicted levels. Despite the large sell-offs by some investors. Following its major price decrease, ADA seems to have entered a condition of turmoil. It fell to a level below any conceivable support on 26th May. 

Cardano will lose more money if the crypto market’s trading volume does not increase. Cardano is beyond the supportive point and in a difficult drop situation. The token had previously ranked ninth in market capitalization. It dropped by 7% in the last 8 hours. 

It’s now possible that Cardano’s price will go below the crucial $0.50 support level. As a result, the sale of its assets generated almost $1.40M in crypto derivatives exchange revenue. If selling pressure rises, recovery may be harder.

Cardano Support Analysis

Analysis of the ADA’s recent 4-hour price chart shows that it has broken out of a squared-off triangle. The token’s Y-axis pattern shows a 33.5% drop as its price goes below support. Candlesticks close below the 50% Fibonacci retracement line at $0.45 would show a 4-hour trend. It could lead to an approval of the downward price trend.

If the pattern holds, ADA could continue to fall until it approaches $0.34 or $0.32. On 12th May, after paying close attention to its progress, the token reached $0.38. If the price continues to fall, this could represent a probable support level.

The bears will gain more if ADA continues to trade below $0.46. It is possible to reverse the token’s price drop’s unfavorable appearance. Candlestick closing for 4-hours would be necessary to break through the resistance barrier.

Furthermore, interrupting some supply procedures could increase ADA’s number of purchase orders. As a result, the token’s price may rise to $0.61. In the last several weeks, the crypto market has had many questions, fears, and uncertainty. 

There was the latest research on the Fear and Greed Index. It shows investors and other players in the cryptocurrency world are becoming pessimistic. BTC may still have potential if on-chain and technical indicators are correct. It is because the coin has yet to receive full-fledged negligence from users.

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