Market Nosedive Sends Cardano (ADA) Deeper Into Bear Territory
The crypto market has not been in the best of places recently and Cardano (ADA) has been feeling the heat especially hot lately. The digital asset which remains one of the popular and largest by market cap has had a hard run of it lately, pushing it further into the bear territory. As ADA continues on this trend of low momentum, hot on the heels of the market decline, indicators have proven to not be in the favor of the token’s value.
Market Declines By $80 Billion
During the weekend, the market had suffered consistent dips. Following the price of the leading cryptocurrency Bitcoin, most altcoins had taken a nosedive during this time. One of those was Cardano which had already been trading below $1 going into the weekend. The dip had pushed it further into the bear territory alongside others. By the time the weekend had come to an end, the crypto market had lost north of $80 billion from its market cap at the time of this writing.
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This decline had been one that has been in the making. With the low momentum that had rocked crypto last week, prospects for the weekend had been increasingly bearish. This had come to a head as bitcoin had declined below $40,000, now trading at the $38,000 territory at the time of this writing.
As different altcoins have taken a hit following this decline, ADA’s outlook at this point has turned for the worse. This is evidenced by the indicators given that the digital asset has declined below every important one, causing a bearish short and long term.
Cardano (ADA) Not Looking Good
Going into the new week, Cardano looks to have it worse than other digital assets in the market. It is currently trading at one-month lows after a decline to the $0.83 level. A strong contender in the DeFi space, this has not seemed to have translated to the price of the digital asset yet.
The cryptocurrency is currently trading below the 50-day moving average at the time of this writing. The average which currently sits at $0.966 is a strong one that helps determine the short-term outlook for a digital asset and for ADA, this indicator points to a very bearish short term for it.
ADA trading at $0.856 | Source: ADAUSD on TradingView.com
This means that the current decline could not be the end for Cardano. If it is unable to recover and climb back above the $0.86 support level, then the digital asset’s price could revisit $0.7 sooner than investors expect.
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It is also a seller’s market meaning that all of the indicators point toward 100% sell pressure for the digital asset, especially for the long term. The next significant resistance point lies at $0.92 but with the price falling below major support levels, this area is out of reach for now.
ADA is trading at $0.839 at the time of this writing. Despite the decline, it remains the 9th largest cryptocurrency with a market cap of $28.36 billion.
Featured image from Investing.com, chart from TradingView.com