The recent sell-off in the crypto market took a significant toll on the Cardano coin, with its price plunging 41.7% in just one week. From a peak of $0.379, the ADA price fell to a low of $0.22, breaking through crucial support levels like $0.355 and $0.3. This has led some to wonder whether ADA will continue to plummet. On the other hand, the Cardano Foundation publicly disagreed with the US SEC, generating speculation that Robinhood might delist $ADA.
Taking a closer look at the daily chart, a long-tail rejection candle at $0.24 seems to indicate an intense buying activity at this support level. Meanwhile, the daily RSI (Relative Strength Index) slope indicator falls within the oversold region, signaling that the ADA price might be under heavy discount. This discounts, along with intraday trading volumes of $650.47 million, point towards a decline of 47%.
Furthermore, on June 10th, Cardano’s price experienced a significant outflow and attempted to breach the December 22nd low of $0.24. However, buyers managed to make an immediate comeback, recovering most of the day’s losses. This led to the daily candle displaying a long wick rejection at $0.24, indicating aggressive accumulation of ADA by buyers at this level. At the time of writing, the ADA price stands at $0.268, marking an intraday loss of 2.33%.
If the selling persists, the coin’s price could retest the $0.24 support level, providing additional confirmation for buyers to accumulate. In contrast, traders might face the nearest supply zone at the $0.3 mark, requiring them to break through this level to obtain the first sign of recovery.
Despite the intense selling pressure observed on June 10th, Cardano’s price managed to stay above the crucial $0.24 support level. The rejection of lower prices, as reflected by the long-tailed candlestick, suggests that buyers have defended this support level. Therefore, ADA’s likelihood of breaking the $0.24 mark seems less plausible, barring any negative news affecting the broader crypto market.
When it comes to technical indicators, the daily RSI slope’s plunge into the oversold region suggests that sellers have gone overboard to depress the coin’s price. This could offer substantial discounts to potential traders. Additionally, the vast gap between the daily EMAs (exponential moving averages) – 20, 50, 100, and 200 – and the ADA price indicates that the current downtrend might be insatiable and a recovery is possible.
While the presented content may reflect the author’s personal opinion, the market’s ultimate direction remains uncertain. As always, conduct thorough market research before investing in cryptocurrencies, since neither the author nor the publication can assume responsibility for any personal financial losses.
Source: Coingape
