Cardano’s ADA plunged by double digits in the past seven days, in line with the bloodbath that covered the entire crypto market.
The question now is whether the price is headed for a further slump or a much-needed recovery.
What’s Next?
On Friday morning, ADA nosedived to around $0.22 (per CoinGecko’s data), the lowest level since June 2023. The renowned analyst Ali Martinez outlined three important support levels where the asset could find buyers if the sell-off continues. The first line is $0.249, the second is $0.115, and the third is the extreme case at $0.053.
As shown in the chart below, there was a brief breakdown below the $0.249 support level, but bulls regained some lost ground, and ADA currently trades at approximately $0.26.
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ADA Price, Source: CoinGecko
Some industry participants expect further recovery and even a major rally in the future. X user CryptoPatel claimed that ADA is at the exact level that triggered a huge pump years ago, wondering if history is about to repeat. They set a short-term target at $0.40, followed by a “full cycle extension” to above $3. However, the analyst warned that a weekly close below $0.10 would invalidate the setup.
X user Sssebi chipped in, too, noting that ADA has never been this oversold on the weekly timeframe in its entire history. According to CryptoWaves, the Relative Strength Index (RSI) has fallen to around 28 on that scale, matching the lowest mark witnessed in 2019.
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ADA RSI, Source: CryptoWaves
The technical analysis tool measures the speed and magnitude of recent price changes and can indeed help traders determine whether the asset is oversold or overbought. Ratios below 30 signal that the valuation has plunged too rapidly over a short period, suggesting it could be on the verge of a resurgence, while anything above 70 is considered a bearish zone.
ADA’s exchange netflow also hints that stabilization may be on the horizon. Data from CoinGlass shows that outflows have dominated inflows over the past several weeks and months, indicating that investors continue to move their holdings from centralized platforms to self-custody. This usually results in reduced selling pressure.
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ADA Exchange Netflow, Source: CoinGlass
Hoskinson’s Crucial Losses
Cardano’s founder, Charles Hoskinson, reported losing over $3 billion due to the market decline. He predicted that the prices may continue plunging, but at the same time gave investors some inspirational guidance that may help them pass through the turbulent times:
“Don’t let the markets get you down. It will get worse, it will get redder, it is what it is. But at the end of the day, are you having fun? Find a way to. And know that each and every one of you in the cryptocurrency space, you are doing something that matters, you are doing something that has the potential to change the world.”
The post Cardano’s Next Support Levels as ADA Tumbles by Double Digits in a Week appeared first on CryptoPotato.
“It will get worse, it will get redder,” Charles Hoskinson warned. Crypto Bits, Crypto News, Cardano (ADA) Price
This articles is written by : Nermeen Nabil Khear Abdelmalak
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