Cardano (ADA) in Trouble as Price Drops Below 50-Day SMA – Time to Buy the Dip?
Cardano's price is facing a tough situation as it slips below the 50-day Simple Moving Average (SMA). Not just ADA, even the entire crypto market is at a loss, down by more than 3%.Looking at the current trend, ADA is likely falling to $0.39. That's a whopping 20.4% decrease from its present value of $0.49.
Despite this, ADA is still very bullish in the long term. This might be the time to buy the dip before the upcoming rally.
Cardano Price Recent MovementLooking at the daily chart of ADA, its price has been going down for the past few weeks. The coin has made several attempts to break above this descending channel but failed due to the bearish pressure.
On December 28, the price broke out from this trend, but the momentum was too weak. The price dropped from $0.67 to a low of $0.47.
On January 09, the market changed trend and rose to $0.6. Unfortunately, the price also tanked again. According to CoinMarketCap, ADA is down 16% over the past month. Also, in the last seven days, the bears have still been in control, forcing a drop of 13.66%.
As of 7:29 a.m. EST today, January 19, the ADA price is $0.49, a decrease of over 3% in the past 24 hours. Nonetheless, there's still hope for this coin to rise in the coming week. A top crypto analyst is super bullish on the coin if this happens.
Insights from Analyst Ali Martinez Point to Promising Trends Ahead#Cardano's current consolidation phase mirrors its late 2020 behavior. If history repeats itself, we might see $ADA resuming its upward trend around April. This pattern continuation could potentially lead to an upswing toward $0.80, a brief correction to $0.60, then $7! pic.twitter.com/RuRA2EDMNP
- Ali (@ali_charts) January 19, 2024
Crypto expert Ali Martinez thinks Cardano (ADA) might see a big boost soon. He believes there's a similarity between how ADA is behaving now and what happened in late 2020.
Looking at the past, Martinez suggests that if things go the same way, ADA could start going up again around April.His analysis indicates that if this pattern repeats, Cardano's price might go up to $0.80 first, then correct a bit to $0.60, and finally shoot up to an impressive $7.
Cardano's Whale Movement Surges to $13 Billion - Its Impact on ADA PriceCardano whales have been quite active for the past few months. $13B in large transactions (>$100k) is being settled on Cardano daily on average. A significant amount, if you compare it to Ethereum's $5B 7-day average. pic.twitter.com/8rjeQZaonU
- IntoTheBlock (@intotheblock) January 18, 2024
Recently, IntoTheBlock posted on X that Cardano is experiencing a notable surge in activity. The tracking platform shared that ADA whales are making impressive transactions totaling $13 billion.
This movement is noticeable, especially when compared to Ethereum's seven-day average of $5 billion.
This means that Cardano's big transactions are much bigger than what Ethereum is doing in the same timeframe. It hints at a potentially significant shift in the behavior of big investors in the Cardano ecosystem.
Cardano Price Analysis: Technical Indicators Suggest Mixed Signals
Cardano has remained stuck in a descending channel on its daily chart for several weeks now. This downward-sloping pattern indicates ADA still faces bearish sentiments in the short term. ADA also trades below its 50-day moving average line currently.
Falling under this key average means ADA lacks the upside momentum needed to change the prevailing downtrend. However, the 200-day moving average sits below ADA's price right now. Maintaining positions above this long-term average signals ADA has support and interest in higher timeframes.
The RSI indicator for ADA has also plunged near 30 into oversold territory. Oversold conditions indicate ADA has recently become extremely undervalued. This can foreshadow a potential reversal as the price picks up again. Overall, ADA faces mixed signals currently.
The descending channel and 50-day average positioning reflect near-term weakness. But the 200-day average and oversold RSI suggest an upside bounce could emerge.
If ADA breaks its channel to the upside and convincingly reclaims the 50-day average, it would confirm that the bulls have retaken control.
That would likely spark a sustained new uptrend. However, more extended declines look possible until clear trend change signals appear. If the channel and oversold RSI cannot spark an ADA relief rally, bears may dominate for a while longer.
But while ADA struggles, investors could diversify to a trending meme coin right now to maximize the emerging opportunity for more gains.
Cardano Alternative: Sponge V2
The first Sponge token became very popular in 2023. Based on this, its market value increased very fast to over $100 million in just a few days. Surprisingly, the team behind this project has decided to create a more advanced version called the Sponge V2.
This new version wants to replicate the success story of the previous one.
Currently, the project is on presale, and interested people can buy it at a very low rate. The project is not just looking to grow substantially; it plans to make things even better by developing exciting features.
These features will make Sponge V2 to be very much helpful in the community.
Sponge V2 Presale Offers Chance to Invest EarlyThe new token Sponge V2 is currently in its presale phase. Right now, the price is just $0.000824. Of course, this price is now very affordable for an average individual.
Following the success of Sponge V1, the V2 version expects massive growth, too.
That might not be an easy task, but with what's in the pipeline, it's possible to achieve this. Early investors also gain lucrative staking rewards. To join the presale, visit the official page and buy with ETH, USDT, or a Card.
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