- ADA’s price has added to its negative weekly performance by dropping 1.66% in the last 24 hours.
- The altcoin’s price is currently resting on a key support level.
- Technical indicators suggest that ADA’s price will continue to drop in the next 24-48 hours.
Cardano is a proof-of-stake (PoS) blockchain platform designed to act as an efficient alternative to proof-of-work (PoW) networks. Recently, accusations have been made on Twitter that Cardano is too centralized, with its parent company Input Output Hong Kong (IOHK) set up in such a way that it will always have control over the network.
Charles Hoskinson did, however, respond by dismissing these centralization accusations – calling the accusations “categorically false” and stating that they are an attempt to spread FUD.
Cardano (ADA) Current Market Standing
Cardano (ADA) is ranked as the seventh biggest project in terms of market cap, according to CoinMarketCap. It experienced a 24-hour price drop of 1.66%, taking its price down to $0.3339 at press time. The Ethereum-killer’s market cap currently stands at $11.579 billion.
Meanwhile, ADA’s 24-hour trading volume currently stands at $183.030 million following a 24-hour decrease of 2.10%. Furthermore, the price of ADA is nearer to its 24-hour low at $0.3318. The altcoin’s daily high stands at $0.3412.
The 24-hour drop in ADA’s price has added to the altcoin’s negative weekly price performance. At press time, ADA’s price is down 8.28% over the last 7 days.
Cardano (ADA) Technical Overview
4-hour chart for ADA/USDT (Source: TradingView)
ADA’s price has been in a medium-term downward trend as can be seen on the bearish trend line established on its 4-hour chart. Furthermore, the 9 and 20 EMA lines on the 4-hour chart have acted as resistance for the altcoin’s price for the last week.
ADA’s price attempted to break above the 9 EMA line on the 4-hour chart during this period. The first attempt happened on Friday and the next attempt happened on Saturday. ADA’s price also attempted to break the level again on Sunday. All of these attempts, however, failed and the Ethereum-killer’s price was rejected shortly after every attempt.
ADA’s price is now targeting the next key support level at around $0.3296. Technical indicators on ADA’s 4-hour chart suggest that the altcoin’s price will continue to drop in the next 24 hours, as the 9 EMA line on ADA’s 4-hour chart is trading below the 20 EMA line on the chart.
Meanwhile, the RSI line on the 4-hour chart is trading below the RSI SMA line on the 4-hour chart.
Daily chart for ADA/USDT (Source: TradingView)
There is an overwhelmingly steep negative trend line present on the daily chart which has forced ADA’s price to rest on a major daily support level at $0.3323 at press time. ADA’s price has broken below this level already during today’s trading session. Fortunately, bulls offered the altcoin the support needed to recover above the key price level.
Technical indicators on ADA’s daily chart suggest that the altcoin’s price will drop below the level again during today’s trading session. The 9-day EMA line is positioned below the 20-day EMA line and is breaking away below the longer EMA line, turning up the pressure on ADA’s price in the process.
In addition to the 9-day EMA line being positioned below the 20-day EMA line, the daily RSI indicator is also flagging bearish at press time. The daily RSI line is positioned below the RSI SMA line and remains negatively sloped towards the oversold territory.
Traders may want to keep an eye on the aforementioned support level at $0.3323. Should ADA’s price close today’s session below this level, then it will serve as confirmation of the bearish thesis. This will put the downside target for ADA at $0.3262.
On the other hand, if ADA’s price is able to close today’s and tomorrow’s trading sessions above the level then it will breach the strong negative trend line. Should this happen, the altcoin’s price will either consolidate or rebound. If the latter happens, then the upward target for the altcoin’s price will be $0.3379.
However, the latest Silvergate drama may eliminate the possibility of a bullish reversal for ADA’s price in the next 24-48 hours.
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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