- Cardano price plunged 7% to $0.5686 as crypto fear hits extreme levels; trading volume slips 13%.
- A death cross and descending trend point to a possible drop to $0.32.
- Strong network activity offers hope, but ADA must break $0.83 to flip bullish.
The Cardano price dropped 7% in the last 24 hours to trade at $0.5686 as of 10:56 a.m. EST on a 13% decline in trading volume to $1.32 billion.
The price drop happens as the cryptocurrency market reels under uncertainty and extreme fear (18), per the Crypto Fear and Greed Index. Investors are on edge amid macroeconomic pressures and market volatility as the price of ADA faces mounting challenges. Can Cardano survive as bearish signals loom large?
Cardano Price Remains Under Strain Amid Bitcoin Volatility
ADA price hovers near a critical support level after failing to breach resistance around $0.70 in recent weeks. Some market participants pointed to a death cross that formed on April 8, signalling a possible 55% plunge to below $0.32.
This bearish outlook aligns with the market’s current mood, as Bitcoin’s faltering momentum drags altcoins like ADA lower. Yet, historical patterns show that extreme fear often precedes capitulation and, eventually, recovery.
On-chain metrics paint a nuanced picture. Data from IntoTheBlock reveals a surge in Cardano’s Network Value to Transaction (NVT) ratio, which recently hit its highest level since June 2024.
A rising NVT suggests that ADA price growth has outpaced on-chain activity, hinting at potential overvaluation, a classic bearish signal.
Over the past 30 days, ADA price has dropped 24.2%, with exchange outflows of roughly $22 million worth of tokens. This indicates some holders are moving assets off platforms, possibly to weather the storm. However, daily active addresses remain robust, recently peaking at over 72,800, a sign of sustained network engagement despite the price dip.
While on-chain metrics show mixed signals, technical analysis indicates Cardano price is at a make-or-break moment.
ADA Price Dilemma: 46% Crash or 36% Gains?
Cardano’s 3-day price chart reveals an asset currently in a downward trend. Price remains within a clearly defined descending channel, respecting upper and lower bounds, while the 50-day simple moving average (SMA) remains well above the current price, confirming bearish momentum.
Recent candles show lower highs and lower lows, consistent with a bearish continuation. Further, the lack of bullish reversal patterns confirms the continuation of the downtrend.
The relative strength index (RSI) is at 38.75, near oversold territory and signalling weak momentum. The MACD shows that the previous bearish crossover remains intact with growing red histogram bars, indicating that the current moment favours sellers.
Below, Cardano price eyes support at $0.54 near the 0.786 Fibonacci retracement, followed by psychological support at $0.50. If the price breaks below this, ADA may correct deeper to the critical support level around $0.326.
On the flip side, if market conditions change and bullish momentum returns, Cardano may surge back higher, finding resistance at $0.71 (0.618 fib retracement) and later at $0.83 (the 0.5 fib) and $0.94 (the 0.328 fib).
A close above $0.83 will confirm market strength, invalidating the current bearish thesis and resulting in a bullish reversal that could send the price of ADA to $1.32 and beyond. As crypto markets grapple with extreme fear, Cardano’s resilience and its community’s conviction will likely be tested.
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you shouldn’t make investment decisions based solely on what you read here.
