Cryptocurrency has had a dreadful couple of days as market value for coins have stumbled. Among the top losers was Cardano (ADA).
According to CoinMarketCap data, Cardano led in terms of being the worst performing cryptocurrency among the top 10 over the last 7 days. The coin had shed -32.40% of its value in a week in which all the top coins ended up trending in red and in double-digit declines.
The sharp decline has been attributed to the surprising news from South Korea that one of the largest Exchanges in the region, Upbit was being investigated for alleged fraud. That partly explains why prices tumbled across the board.
During the Asian trading hours, only Stellar (XLM) had made a positive trend in the last 24 hours with a +7.76% price jump. However, Cardano had all the signals of a possible push for an upside but that southerly trend was over soon as it traded at 3.25 lower as of this writing.
Can Cardano (ADA) bulls reverse the downside push?
The bearish trend for Cardano appeared destined to end in a massacre, but thankfully, that trend has somewhat slowed down. The sudden decline that characterized prices on Friday and ended in an 18% price slump has now cooled off and ADA is trimming losses.
During the Asian trading hours, the coin traded well in bear territory, its 24h decline at -7.6% over its previous price. Prices fell to $0.24 against the US dollar and were looking to be headed for sub $0.20. The downside movement threatening to correct below $0.20 would have undone all the gains made in the last one month.
Luckily for Cardano investors, that was stemmed, the coin trading close to $0.21 then gaining a surprise push that has seen it move +4.52% on the hour-to-hour charts to the current $0.26 against the US dollar.
Although the overall sentiment is still bearish, the general atmosphere is likely to favor a minor upside move that can be sustained if key support lines are formed above $0.25. At the moment, the bulls seem to be struggling to keep momentum, but should the upside correction persist well into European trading hours, then we could be looking at ADA pushing towards a strong resistance expected at $0.30 for the next few hours. If they carry the same momentum in the next 24 hours, it will likely result in a mini-rally.
That said, ADA isn’t out of the woods yet, as there is resistance building up close to the 23.6% Fibonacci retracement level. This corresponds to the previous drop zones at $0.323 – $0.282. The support lines will need to consolidate above these, alongside the 50% Fibonacci retracement level, probably settling at $0.302.
That bearish trend will likely continue over the weekend and part of next week but should be in check by the end of coming week in time for an expected bullish rally.
The one thing that should encourage anyone bothered by the current decline should be that ADA is still profitable over the last 30 days. Its value over the period is +32.39% higher. When you consider price growth over the last 180 days, it explodes to +915% higher. What this means is that the long-term picture is brighter and that should be the aim.
Cardano at a glance
Cardano is a non-mineable coin. The Cardano platform and its project are hailed as one of the best cryptocurrency solutions on the market. As the first scientifically-based and peer-reviewed project, the platform boasts some of the most advanced technological features.
Its code is written in highly thought of Haskell language; it utilizes the Ouroboros protocol, which is a provably secure proof of stake consensus mechanism; and recently updated its Daedalus wallet- a state-of-the-art wallet that will have the capacity to run decentralized applications on the blockchain.
Other than that, Cardano (ADA) boasts of one of the best teams to run a blockchain project. The IOHK, Emurgo, and the Cardano Foundation are all working towards making it the top smart contracts platform. Consistently ranked as one of the top 10 cryptocurrencies, it’s currently 7th on the market with a market cap of $6.77 billion.