Cardano’s price has tumbled by more than 5 per cent in today’s trading session to trade at a $0.35 price level. The aggressive bear trend comes less than a month after the project completed its Vasil hard fork, which had been predicted to be a game changer for the crypto. The price has also been in a long-term trend, setting new price lows with each passing day, and today, it is trading at its lowest price level since February 2021.
Today’s price drop in the market also comes amidst a huge interest in the cryptocurrency in the past 24 hours, resulting in its trading volume surging by more than 75 per cent within the timeframe. Normally such a surge would translate to Cardano price also surging in the markets. However, today’s trading session has continued the long-term bearish trend.
Part of the reason for this failure to respond to the surging trading volume may be due to its significant correlation with the cryptocurrency industry. Today, as the industry continues to struggle, Cardano’s price also continues to get dragged down due to its significant correlation with the industry.
Since May 31, Cardano has been stuck within a descending channel. Today, the prices look to be trending aggressively towards the channel’s lower trendline. The chart also shows the Williams Alligator indicator giving strong signals of the continuation of the current bearish trend.
Therefore, I expect the Cardano price to continue dropping aggressively and hit the channel’s lower trendline. There is also a high likelihood we might see a breakout, which will see Cardano’s price drop below the $0.30 price level. Based on the current price action, I expect Cardano to continue setting new price lows. A trade above the $0.40 price level will invalidate my bearish analysis.
This post was last modified on Oct 13, 2022, 13:57 BST 13:57