Cardano Price Shows Weakness as It Drops Below Crucial Support Level! Here’s What to Expect from ADA Price Next
Following a challenging week for the cryptocurrency industry, with persistently high inflation highlighting concerns about monetary policy, it’s expected that macroeconomic issues will once again take center stage for crypto watchers this week. Additionally, Cardano investors will need to contend with a series of high-level economic data releases, as Federal Reserve Chair Jerome Powell has signaled the possibility of interest rate hikes at the upcoming FOMC meeting. With bulls still lacking sufficient confidence, it is anticipated that ADA prices will continue to be subjected to bearish pressure in the coming days.
ADA Investors Are Cashing Out Heavily
One critical factor that makes Cardano an attractive option for investors is its architecture and constant developments, which prioritize scalability and sustainability. In addition, Cardano has several other compelling reasons why it stands out in the market as one of the top proof-of-stake cryptocurrencies.
ADA’s four-month holdings are currently on a move, indicating that mid-term investors are cashing out their profits as ADA experiences a significant downturn in the market. Over the past 21 days, the price of ADA has dropped by 22%, making it one of the poorest-performing assets in the market. As a result, its profitability has decreased to around 10%.
However, there is bullish news holding investors’ expectations at a high level. The trading volume of Cardano (ADA) has surged to more than 23 billion ADA, potentially igniting a new bullish trend for the cryptocurrency. Although ADA’s value has declined by 22% in the past three weeks due to insufficient speculative activity, the recent increase in trading volume offers a hopeful outlook for the asset’s future performance.
What Are The Next Breakout Levels For ADA Price?
The value of Cardano (ADA) is experiencing a downward trend following the withdrawal of one of the prominent payment services in the cryptocurrency industry, Silvergate Capital. This news appears to be another significant setback for the sector, following FTX’s recent collapse and Terra’s LUNA downturn. As a result, bullish sentiment in the ADA price chart is encountering strong resistance and is expected to break below the bearish triangle, leading to a further decline in value.
ADA has encountered significant resistance and sharp rejections as it attempted to break out of the bearish triangle. This resulted in another critical juncture for Cardano, as it faced challenging market conditions, potentially leading to a drop below $0.32.
As of writing, ADA price trades at $0.323, dropping over 1.4% in the last 24 hours. If the level of $0.32 breaks under pressure from the bearish triangle completion, a 10% decrease is likely, with a target of $0.30.