Cardano Slips Below $0.50 Alarming a Future Danger


Cardano is one of the cryptocurrencies with greater impact due to significant price drops. Price volatility remains one of the substantial discouragements and threats of virtual currencies. Their price swing could go more than ten times in one minute. A positive price movement is always a favorable trend for a token and its investors. However, a price drop could pose a danger to both.

The general crypto markets have recently witnessed a more downward trend. This has caused several tokens to remain at expected price levels even as some investors are making massive sell-offs. Cardano appears to have entered a state of instability after the critical price drop. The slide on Thursday went below the possible support level. Without any increase in trading volume in the crypto market, Cardano will incur more losses.

Cardano now fights dangerously from his drop position as he is past the support mark. Although it had a previous market cap as the eighth cryptocurrency, the token had fallen 7% in the past 8 hours.

Cardano price has now fallen below the $0.50 support line. Therefore, its liquidation has raised more than $1.40 million from crypto derivatives exchanges. As selling pressure builds, the likelihood of a more difficult recovery is greater.

Cardano Analytical Study for Support Level

ADA’s latest 4-hour price chart analysis shows a release of a symmetrical triangle. The Y-axis pattern for height represents a 33.5% drop for the token as the price dips below the support level. Using a candlestick that could reflect the 4-hour trend, it would move below the 50% level of Fibonacci retracement at $0.45. This may bring confirmation of the negative price trend.

Where there is a continuation of the pattern, ADA could maintain a downtrend reaching $0.34 or $0.32. By closely monitoring the move on May 12, the token moved towards $0.38. This could eventually become the possible support level if it moves more downwards.

If the ADA continues to trade below $0.46, the bears will profit more. It is possible to undo the negative appearance of the price drop for the token. This would require a break on the resistance barrier using a candlestick experimented for 4 hours.

Cardano price below $0.46 | Source: ADAUSD on TradingView.com

Also, cutting off some delivery processes could increase ADA’s number of buy orders. Therefore, the price of the token can reach $0.61 if it goes up.

The crypto market has harbored many uncertainties, doubts and fears in recent weeks. The Fear and Greed Index report shows heightened levels of negativity among investors and other participants in the crypto market.

According to the technical and on-chain indicators, there may still be hope for Bitcoin. This is because the token has yet to receive a complete negligence from participants.

Featured image of Pexels, chart from TradingView.com

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