Cardano (ADA) has seen a big price drop, which has resulted in a depreciation of 11% of total value over the past twenty-four hours.
The price is now sitting at around $0.665, and many traders are starting to wonder whether it will rebound or fall even further.
At the same time trading volume has significantly increased, having risen by 9%, showing the current high level of activity in the market right now.
Looking at the daily chart, the $0.65 price level is a key price point that played out as an important support level in the past. If the price level remains above this price, there is a chance that the price could rise by 25% to $0.85.
But if the price level were to fall below $0.65, then it might have the potential to fall as low as 22% lower.
Also, the chart shows that ADA is struggling to cross the 20-day moving average line. This shows that the bears are still in control. The 50-day and the 100-day moving averages are also on the verge of breaking down, a sign of further losses to come.
Additionally, the Chaikin Money Flow Index, which tracks buying and selling pressure, has turned negative, suggesting that more people are selling than buying.
But despite the price drop, some investors are still buying the crypto. According to On-chain, over $8 million worth of ADA has left exchanges in the last 24 hours alone. The majority of the time, when a large amount of coin leaves an exchange, it means that people are holding on to it and not selling.
At the same time, short traders have placed $17.3 million in bets that ADA will keep falling. If the price drops to $0.634, around $3.08 million worth of long trades could be lost. But if the price goes up to $0.708, approximately $17.3 million of short trades may be lost.
Meanwhile, Bitcoin dipping below $90,000 isn’t also helping ADA’s condition. The whole crypto market is under sell pressure, and if it continues, it could encourage more drops.
However, there is some hope. The SEC has recently accepted a filing for a Cardano ETF, and if it is approved, it will bring in more investors and push ADA up again.
Also Read: Will the SEC Approve Grayscale’s Cardano ETF Soon?
