Cardano (ADA) Sheds 15% Of Value In Last 7 Days – When Will The Pain Stop?
October 16 2022 - 1:33AM
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Cryptocurrency investors have been keeping a close eye on Cardano
lately. One Reddit user noted that the current rate of price change
is the slowest since January of 2021. Coingecko reports that the
value of Cardano has dropped by 15% over the past two weeks and 24%
over the past month. In spite of the introduction of the Vasil
update, ADA was unable to gain traction and stage a comeback.
Currently, ADA is trading at a positive $0.3673. However, it’s
possible that this is a single green blip amidst a sea of red.
Investors in Cardano tokens are in a difficult position as the
network continues to shed value: should they hold on to their
holdings or sell some to stem the bleeding? Related Reading: Cosmos
Detects Major System Weak Point – Will ATOM Price Be In Trouble?
Crossroads: Keep Or Unload At the time of writing, token
indications are very pessimistic. Based on the bull-bear power
indicator, it appears that the market is now trending downwards.
However, the lows of Chaikin’s money flow index are in line with
the lows of March, putting it close to the bull and bear barrier.
Chart: TradingView The Stoch RSI is likewise in oversold zone,
indicating that the majority of investors are riding the sell-off
wave on the bears’ side. This gloomy market sentiment will
undoubtedly hinder Cardano’s chances of recovery. Current
macroeconomic factors drag the cryptocurrency along with the rest
of the financial sector. Bears are also challenging the lower
Bollinger band, which exerts significant downward pressure on the
coin. Sell Everything Now? Currently, the coin is trading between
$0.3500 and $0.5946, and similar to the indicators, the broader
outlook for Cardano is not favorable. As ADA attempted to recover
from one of the most violent downtrends in Cardano’s history, a far
stronger and more pronounced slump developed even before the
current sell-off. From the already available market data, we may
conclude that the Vasil update failed to address investor
confidence. The 20-day and 10-day exponential moving averages serve
as dynamic resistance levels for the cryptocurrency. The current
support is located around the 61.80 Fibonacci retracement level,
which is about $0.3535. The latest charts, however, indicate that
the token may return to around the 78.60 Fib level, which is
currently located around $0.3771. In the following days or weeks,
the Cardano token is likely to fall more as Cardano struggles to
maintain stability. Related Reading: Ethereum Classic (ETC) Price
Muffled In Last 2 Months – Will ‘Uptober’ Any Different? ADA total
market cap at $12.6 billion on the daily chart | Featured image
from Monex Securities, Chart: TradingView.com Disclaimer: The
analysis represents the author's personal views and should not be
construed as investment advice.
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