Cardano Price Falls To $0.45 For The Third Time Since Mid-April –Will ADA Hold This Time?
Cardano Price Analysis
Key Takeaways
- Cardano has revisited the critical $0.45 support level.
- On-chain data shows more support at $0.44 than resistance at $0.48.
- RSI suggests consolidation before potential uptrend or continuation of downtrend.
On April 13, the price of Cardano fell to a low of $0.40 from $0.60 only two days prior,. This was a continuation of a downtrend from March 11, when it reached a high of $0.80. Since then, it has stabilized, making small recoveries in between falls.
On April 23, ADA went above $0.50 but fell to $0.43 by May 1. Its next upturn ended at $0.46 and is now back at $0.45 for the third time since its April low. Does this suggest Cardano doesn’t have the strength for a larger recovery, or is ADA still consolidating before a major move?
Cardano (ADA) On-Chain Data
Most Cardano investors are out of money , with 58.82% or 2.63 million addresses, while 34.75% are in the money. That leaves 6.43% breaking even, hinting at the potential market indecision as a cluster is being formed at the current price.
However, as the chart above shows, a bigger cluster below $0.44 than at $0.48 suggests ADA has more support than resistance. Regarding the addresses stats , the network activity mimics the price action.
The number of active addresses went from a high of 71,270 on March 6 to a low of 25,000 on April 28. It has risen since its last low and is slightly above 31,000 today, May 7.
Transactions have also declined across all cohorts, indicating diminishing network activity. In addition, the most notable metric is a 43.59% decrease within a $1m – $10m cohort.
Cardano (ADA) Price Analysis
The price of Cardano is in a major downtrend from its March 14 peak of $0.80. On April 13, it fell to a low of $0.40 but only briefly, quickly snapping back above $0.44. A recovery followed, with a high of $0.53 on April 23, finding resistance at the descending trendline anchored at the March 14 peak.
On the subsequent downturn, it retested the $0.42 area for support and made a slight upturn but with low momentum. Now, it is worth $0.45. It went above the descending trendline, potentially signaling the beginning of a new bull phase.
ADA is now retesting the 0.618 Fibonacci retracement level. With the daily chart RSI hovering slightly above the oversold level, we could see a period of consolidation before the next upward trend.
But as the price is currently on a downtrend, if the sellers’ pressure intensifies a breakout below $0.40 would mean ADA still hasn’t finished its major downtrend.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
Cardano Price Decline Hits 50% — Past ADA Corrections Indicate Bottom is In
