Cardanos ADA Price Forecast Plummets 10 in 24 Hours
Despite its widespread popularity and technological advancements, Cardano (ADA) has not been able to avoid the downward trend affecting the cryptocurrency markets as a whole towards the end of the first week of July. Surprisingly, the token has also defied technical analysis (TA) with its recent decline. At the beginning of the month, it seemed like ADA’s decline was coming to an end as it formed a falling wedge breakout pattern, sparking expectations of a potential 70% rally in the near future.
However, after a brief surge that pushed the cryptocurrency close to $0.42 on July 3, ADA experienced a sharp decline, dropping to lows of $0.3211 on July 5. Despite slipping below its immediate support zone near $0.35, Cardano managed to avoid a steep fall by holding above the second support level and has since recovered to $0.34459.
Nevertheless, the token remains in a precarious position due to the overall bearish trend prevailing in the crypto markets, which has led to significant declines in multiple other coins and tokens in recent days. The question remains: is Cardano poised for a rally or is a further decline on the horizon?
The pessimistic sentiment is reinforced by Cardano’s recent performance. With only 12 green days out of the last 30, the token is trading well below its 200-day simple moving average of $0.536241. Unlike major cryptocurrencies like Bitcoin (BTC), which managed to avoid major drops despite not maintaining their March highs, ADA briefly touched the $0.77 yearly highs before consistently remaining below $0.50 by mid-April.
Despite these challenges, Cardano’s technical progress and positive statistics offer a more optimistic outlook. In the past week alone, the network introduced a new node and a new lace version, while the number of smart contracts on the Plutus network surpassed 62,000.
Even in a bullish scenario, it is unlikely that Cardano will surpass $0.40 in the immediate future, as it would need to overcome the nearest resistance level near $0.39. However, if it manages to do so, it could potentially reclaim prices above $0.50, especially if the broader trends in the crypto markets turn positive.
Disclaimer: This content should not be construed as investment advice. Investing in cryptocurrencies carries inherent risks and speculative nature. Your capital is at risk when investing.