The reputation of cryptocurrencies has been significantly ruined in the aftermath of the Terra LUNA massacre, leading retail investors and traders to believe that huge loss are possible if things really go down. With that in mind, Cardano’s price is expected to enter another round of bearish trades, with a drop back to last week’s low near $0.415, with a risk of falling 85 percent below that level to $0.075.
The Cardano price is in danger of ending the week with yet another loss in the books. There are no fundamental support levels or factors that bulls might use to enter and exit the market.
Instead, the ADA price appears to be headed for a test to the downside, possibly as low as $0.415, which was tested in the previous week. It coincides with the S3 from last month and the S2 from May, making it a fascinating place for a probable power shift from bears to bulls as the Relative Strength Index approaches the low point before trading into oversold territory.
Nonetheless, a technical break might cause a sale at the ADA price, driving price action down to $0.075, causing the cryptocurrency to lose approximately 85% of its value. Expect ADA to rally back to $0.900 against the cap of the 55-day Simple Moving Average after breaking above the red falling trend line.
Wallets have another story
Following the crisis in the cryptocurrency market caused by the drop in LUNA (Terra), a rapid increase in the creation of exclusive ADA wallets occurred. Wallets storing $ADA (Cardano’s native coin) on the network’s blockchain have increased to over 70,000 in the last 30 days, a considerable rise.
According to Cardano blockchain-related insights shared on Google Data Studio on behalf of the Cardano Fans Stake Pool, up to 2,000 wallets were added to the Cardano network on a daily basis during the last 30 days, with a total number of 70,200 wallets added. On the 19th of April, there were 3.268 million holders by the network, but on the 19th of May, that number had climbed to over 3.33 million holders.