The cryptocurrency bloodbath has entered yet another day today as the majority of the cryptocurrencies have lost their value in the middle of volatility. Terra (LUNA) plunged below $1 while Bitcoin is struggling to hold on to $30,000.
Meanwhile, even Cardano is under a massive downswing along with the global crypto market dropping by 1.60% over the last 24hrs trading at $1.4 trillion.
Investors Don’t Trust ADA Yet!
The Cardano price hit an all-time high at $3.11 in the month of September 2021 and since then the currency has been on a 35-week downswing. Later in March 2022, Cardano’s ADA price rallied 60% trading a high at $1.24.
But this bull run couldn’t stand for long as bears hopped in to gain control pushing the Cardano price back to a bearish trend and the present market crash has made Cardano’s price even more miserable.
At the moment, Cardano is trading at $0.63 with a plunge of 5.59% over the last 24hrs. Now the immediate support for Cardano’s ADA price lies at $0.39 and if ADA falls at this level, it would account for a 35% crash from its current price.
Hence, if any investors are looking to buy the dip opportunity, then that should be when the ADA price is trading around the $0.39 level. A price crash to this zone will vanish sellers giving an opportunity for buyers to accumulate ADA.
The one reason for Cardano to continue its bearish trend further is the recent drop in the number of ADA tokens held by wallets between 100,000 and 1,000,000 ADA tokens. Since March 11, 2022, investors holding ADA tokens have reduced from 22,807 to 21,100.
This crash of 7.9% suggests that these investors are selling their tokens and are not positive on ADA yet.
However, if Cardano manages to close the candlestick above $0.677 then the price is expected to regain the bullish trend heading towards the $0.900 barrier.