Cardano‘s Cryptic Crash: Can ADA Recover or Will It Hit Rock Bottom?
- Cardano was down 50% from its December peak of $1.3.
- At press time, ADA’s price hit a pivotal point, but demand was still weak.
Oh, Cardano (ADA)! You’ve had quite the rollercoaster ride, haven’t you? Down 50% from your December peak of $1.3, you’re now in a multi-month downtrend channel (white). But hey, at least you’re not alone – Bitcoin‘s drop below $90K didn’t help matters either.
Even the Grayscale Cardano ETF acknowledgment didn’t induce much demand, reinforcing macro uncertainty as a key risk factor for you and the broader market. But wait, there’s a silver lining! The slight 2% drop in Bitcoin dominance could offer relief to altcoins, including you.
Cardano hits a pivotal level
At the time of writing, you were down 50% from your December peak of $1.3, marking a multi-month downtrend channel (white). The current price action retested the channel’s range low, which also doubled as a bullish order block (likely support, cyan) at $0.69.
However, technical indicators show mixed signals. The daily RSI is below a neutral level, indicating muted demand. But the Chaikin Money Flow (CMF) flipped positive, suggesting improved inflows.
Simply put, ADA bulls could attempt to defend the range-low, if BTC recovers. On the contrary, a sustained sell-off could drag you to $0.56, the first cool-off zone after the post-US election upswing.
ADA’s speculative interest drops
Your weak demand was also evident in the Futures market. The altcoin’s speculative interest dropped over 60% from $1.48B in January to $55M, at press time. This meant investors withdrew money from the derivatives market, a bearish signal.
From a liquidity perspective, there were four key pockets of liquidity (bright yellow) worth tracking. The levels were $0.78, $0.75, $0.7 and $0.62.
The $0.78 aligned with the channel’s mid-range level, while $0.62 coincided with the range lows. In case of a liquidity sweep, you could fluctuate between these key levels, especially if BTC fails to set a decisive direction.
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2025-02-27 04:09