The crypto market is experiencing a significant surge in selling pressure, resulting in massive liquidations of nearly $1.5 billion. Amid such conditions, Cardano (ADA) trades at $0.55, recording a near 13% drop in the last 24 hours. With a current market cap of $19.56 billion, ADA remains the 10th largest cryptocurrency by valuation.
Amid the increased supply, the trading volume has increased to $1.6 billion over the last 24-hour period. This increase in volume as price is declining shows a growing demand among traders. Will this crash the ADA price under $0.50?
Cardano Price Analysis
The Cardano price trend has remained bearish since December 2024 after the sudden bull run. During this downtrend, the ADA price trend has been making lower highs and lower lows.
A descending trendline connecting the highest points since December 2024 can be observed. This trendline has acted as a strong resistance, consistently pushing the price lower each time it approaches.
Cardano has declined nearly 55% from its December peak at $1.23 to the current price level of $0.55. This increases the bearish anticipation of the $0.50 breakdown.
The rectangular consolidation zone formed between March and early April has now broken to the downside. This indicates a bearish trend continuation.
Cardano is trading below all the crucial daily EMAs (20, 50, 100, 200) at $0.55. There is a significant gap of 17% from the closest EMA at $0.66.
The 20 EMA crossing below the 50 EMA in late March formed a “death cross” pattern, a trend continuation signal.
MACD has been bearish with readings of -0.0105, -0.0396, and -0.0291. The histogram is in negative territory, and the MACD line remains below the signal line, confirming the current downtrend and suggesting a potential continued bearish pressure.
ADA Price Targets
Currently, the key resistance levels, based on the Fibonacci levels, are the 50% level at $0.77 and the 0.382 level at $0.88. For now, immediate support is arising from the current price zone around $0.65, while stronger support sits at the 78.60% Fibonacci level at $0.51. The bulls will have to defend in order to prevent any further crashes.
If the ADA price breaks below the current price level at $0.55, the next target would be the $0.48 mark along the descending trendline, followed by $0.40. If ADA breaks above the current level, the first target would be the 0.618 Fibonacci level at $0.67 and then potentially challenge the 0.5 level at $0.77.
Bears Dominate Cardano Futures Amid Major Shakeout
The Open Interest of Cardano is now at $310.2 million, with the value of perpetual contracts hitting $309.4 million. The open interest witnessed an extreme drop in the last 24 hours, with all types of contracts experiencing a decrease of 15.11%. This fall of open interest in a price downtrend coincides with the massive liquidations reflecting a major shakeout of the traders.
The funding rates have been negative over the past days and are now standing at a minimal level of -0.0172%. Historically, long stretches of negative funding rates often come right before the increase in price as the short positions eventually have to be taken over.
