The ADA price retreated sharply today as the strong cryptocurrency resurgence hit a wall. The Cardano price declined to $1.2480, which was about 10% below the highest point yesterday. Other peers like Polkadot, Solana, and Binance Coin have also dropped by more than 10% from their weekly high.
What happened? Digital coins surged during the weekend and on Monday as investors reacted to positive comments from Elon Musk. The trend continued after Amazon made a job posting advertising a digital currency lead.
This advert provided early signals that the company was considering accepting the coin. Some media sources reported that the company was working to accept the coin later this year. However, in a statement, a spokesperson refuted the claims, pushing Bitcoin price tumbling. The statement said:
“Notwithstanding our interest in the space, the speculation that has ensued around our specific plans for cryptocurrencies is not true. We remain focused on exploring what this could look like for customers shopping on Amazon.”
Still, there are positive signs about the industry. For one, data compiled by CoinMarketCap shows that volume has bounced back. For example, Binance processed coins worth more than $25 billion in the past 24 hours.
Coinbase, Huobi Global, Kraken, and FTX also processed cryptocurrencies worth more than $12 billion combined. This is a good thing for cryptocurrencies like Cardano, whose volume rose to more than $3 billion. This is a substantially higher volume than the recent average volume of more than $1 billion.
The hourly chart shows that the ADA price has pared back some of its recent gains. Along the way, the coin has moved below the 38.2% Fibonacci retracement level. It has also crossed the 25-period and 50-period moving averages (MA). The decline happened after the coin formed a small double-top pattern. It is also between the standard pivot point and the first resistance.
Therefore, the coin may keep falling as bears target the pivot point at $1.1668. On the flip side, a move above $1.30 will invalidate the bearish view.
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