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- ADA’s price dropped 1.87% over the past 24 hours and was trading at $0.2423 as a result.
- The negative daily performance was also enough to flip ADA’s weekly performance into the red zone.
- Technical indicators on ADA’s chart suggested that its price may continue to drop in the next 24-48 hours.
Cardano has seen its total value locked (TVL) soar to a new high. Over the past few days, ADA’s TVL has risen to 637 million ADA. This is approximately $253.7 million at the altcoin’s current price. Notably, this is not the project’s all-time high (ATH) TVL, which stands at $326 million and was set in March last year.
Current Market Standing
Cardano (ADA) is ranked as the eighth biggest project in terms of market cap, according to CoinMarketCap. It experienced a 24-hour price drop of 1.87%, taking its price down to $0.2423 at press time. The Ethereum-killer’s market cap stood at $8.533 billion as a result.
Meanwhile, ADA’s 24-hour trading volume stood at $114.020 million, following a 24-hour decrease of 12.06%. Furthermore, the price of ADA was nearer to its 24-hour low of $0.2407, while the altcoin’s daily high stood at $0.2472.
The negative daily performance also dragged ADA’s weekly performance into the red zone. Consequently, the altcoin’s price was down 1.59% over the past seven days.
Cardano (ADA) Technical Overview
4-hour chart for ADA/USDT (Source: TradingView)
ADA’s price dropped below the key support level at $0.2450 over the past 24 hours and continued to trade below this significant price point at press time. Furthermore, the cryptocurrency’s value had temporarily dipped below the next mark at $0.2400 earlier today as well. However, bulls stepped in to boost ADA’s price to back above this level.
Should ADA close a 4-hour candle below $0.2400 within the coming 24 hours, then traders may identify this as a bearish development. Subsequently, the cryptocurrency’s price may continue to fall in the following 24-48 hours.
If this bearish thesis is validated, then ADA could fall to as low as $0.2365. On the other hand, if ADA’s price remains above $0.2400 for the rest of today’s trading session, then it may attempt to reclaim a position above the $0.2450 barrier in the short term.
A 4-hour candle close above this mark could be seen as positive by traders. Therefore, bulls may step in to accumulate ADA — leading to an influx of buy pressure. Should this potential capital injection continue, ADA may have the support needed to overcome the $0.2495 resistance level. In an extremely bullish scenario, it may even rise to as high as $0.2560.
Daily chart for ADA/USDT (Source: TradingView)
Zooming out to the daily timeframe shows that a negative trend line has formed on ADA’s chart. This was after the altcoin’s price recorded a second lower high on Monday. Since then, ADA has consistently closed each trading session at a lower price than the previous candle’s closing price.
If ADA is able to close today’s trading session above the $0.2450 mark, then it could have a chance at challenging the negative trend line that had formed on its chart. This may then lead to ADA breaking above the $0.2496 barrier and attempting to do the same with the subsequent threshold at $0.2560 in the coming couple of days.
However, technical indicators on ADA’s daily chart suggested that a bearish scenario may be more likely to play out in the next 48 hours. Firstly, the daily MACD line was breaking away below the MACD Signal line at press time.
This suggested that ADA’s current bearish trend was gaining traction, which may result in the negative trend continuing in the next couple of days. In addition to the bearishness expressed by the MACD indicator, the daily RSI indicator suggested that bears had the upper hand against bulls on ADA’s daily chart as well.
The RSI line on ADA’s daily chart was positioned below the RSI SMA line. This could indicate that sellers were a lot stronger than buyers at press time. Furthermore, the RSI line was sloped negatively towards oversold territory. This suggested that sellers may continue to maintain the majority of strength on ADA’s chart in the next few days.
If these technical flags are validated, ADA could drop below the immediate support level at $0.2400 within the next 24 hours. Thereafter, the cryptocurrency will be at risk of testing the next key support level at $0.2365.
Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
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