Cardano (ADA) Revisits a Support Zone Twice, Risking a 20% Crash

  • Cardano’s price could not sustain its upward moves, leading to a 37% fall within the previous month.
  • The alt might lose 20% towards $0.80 if it fails to keep the psychological area of $1.
  • A 24hr candle close beyond the 50-day Simple Moving Average at $1.20 will reveal a potential upward move.

Cardano’s price exhibited downward movements over the previous month. Such scenarios had the alternative coin revisiting a critical support zone two times. Violating this barrier might translate to a massive retracement towards value zones not seen since one year ago.

ADA Price on a Decisive Zone

Cardano printed a higher high near $1.64, matching with 100-day SMA on 18 January. After that, ADA suffered downward actions, revisiting the $1 mark two times last month. As the ‘ETH Killer’ touches the $1 psychological zone again, ADA increases its breakdown possibilities. Furthermore, a double bottom plus sell-side liquidity territory at $0.803 encourage market makers to take the alt lower.

Therefore, market participants should exercise care and await downward movements for the coin. In a bullish case, buyers’ resurgence might see ADA price holding the $1 foothold and consolidating while contemplating directional bias.

Further supporting Cardano’s grim nature is the IntoTheBlock’s GIOM model. The index shows a failure to hold beyond support at $1 will see ADA revisiting the $0.90 support cluster. Here, nearly 53,070 addresses bought 452.53 million ADA coins. Meanwhile, the level appears relatively weak, and bears can breach it without challenges whenever the price revisits the region.

The reduction in large transfers worth more than $100,000 to 2,050 from 3,620 aligns with ADA’s recent downswings. Moreover, the 43% downward move shows net worth investors not trusting ADA at its current price.

As the narrative appears grim for ADA, a rebound odd the barrier at 41 might catalyze a massive upswing if buyers gang up. If the upward move pushes Cardano for a daily candle close beyond $1.20 or 50-day Simple Moving Average, it will mean a possible upward move start.

What are your thoughts about the crypto space at the moment? Feel free to comment in the reply area below.