Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Cardano Slides Below Critical Support

By Crypto BriefingCryptocurrencyMay 26, 2022 08:12AM ET
www.investing.com/analysis/cardano-slides-below-critical-support-200624916
Cardano Slides Below Critical Support
By Crypto Briefing   |  May 26, 2022 08:12AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Cardano has dropped below a crucial area of support.

Key Takeaways

  • Cardano has registered a 7% drop today as the market's downward momentum continues.
  • The downswing pushed ADA below the vital $0.50 support level.
  • Further selling pressure could result in a correction to $0.34.

Cardano kicked off Thursday in bearish mode after dipping below a vital support level. The lack of trading volumes in the cryptocurrency market suggests that further losses can be expected.

Cardano Prepares to Dip Lower

Cardano looks like it’s crumbling under pressure after breaching a crucial support area.

The eighth-largest cryptocurrency by market cap has suffered a 7% drop over the past eight hours. The sudden downswing pushed ADA below the vital $0.50 support level and generated over $1.40 million worth of liquidations across crypto derivatives exchanges. Further selling pressure around the current price levels could increase the chances of a steeper correction.

Cardano appears to be breaking out of a symmetrical triangle that developed on its four-hour chart. The height of the pattern’s Y-axis suggests that ADA entered a 33.5% downtrend when it dropped below the $0.50 support level. A four-hour candlestick close below the 50% Fibonacci retracement level at roughly $0.48 will likely confirm the pessimistic outlook.

In this eventuality, Cardano could continue to trend down toward $0.34 or even $0.32. It is worth noting that ADA’s May 12 swing low at $0.38 could serve as potential support as it descends.

ADA/USD 4-Hr Chart.
ADA/USD 4-Hr Chart.

Source: TradingView

The odds will likely favor the bears as long as ADA remains trading below $0.55. However, a sustained four-hour candlestick close above this resistance barrier could invalidate the pessimistic outlook. Slicing through this supply wall could accelerate the number of buy orders behind Cardano, pushing prices toward $0.61.

Fear, uncertainty, and doubt have taken over the cryptocurrency market in recent weeks, with the Fear and Greed Index revealing high levels of pessimism among market participants. Moreover, on-chain and technical indicators suggest that the prevailing negative sentiment has not yet taken its toll on Bitcoin, indicating that a market bottom is not yet in sight.

Although investing when sentiment is low has historically served cryptocurrency investors well, the current conditions appear ripe for a steeper downturn.

Original Post

Cardano Slides Below Critical Support
 

Related Articles

Crypto Briefing
Nexo Looks To Acquire Distressed Crypto Lender Vauld By Crypto Briefing - Jul 05, 2022

Vauld announced Monday that it had paused customer withdrawals amid volatile market conditions. It looks like Nexo could be stepping in to acquire the firm. Key Takeaways Nexo has...

Cardano Slides Below Critical Support

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email