Cardano (ADA) Price Declines 23% Amid Market Sell-Off
Cardano's native cryptocurrency, ADA, has experienced a 23% correction over the past week amid a broader crypto market decline. Currently, ADA is trading at $0.7312, down 4%, with daily trading volumes increasing by 15.6% to $900 million.
Current Market Dynamics
- Bears dominate, leading to negative funding rates and hesitation among bulls.
- Over $4.66 million in ADA is at liquidation risk near the $0.77 resistance level.
- Bearish sentiment prevails, but unexpected buying momentum could trigger short liquidations.
Potential for Recovery
- The Relative Strength Index (RSI) indicates ADA is oversold for the first time in six months, suggesting potential recovery.
- Historically, ADA has struggled to capitalize on oversold conditions for significant price gains.
- ADA remains above critical support levels of $0.81–$0.67, maintaining some bullish momentum.
Investor activity around ADA has decreased despite expectations of a rally to $1. A breakout above $0.81 is necessary to activate bullish momentum.