Cardano (ADA) Drops Over 10%—Key Levels to Watch Amid Market Volatility

Cardano (ADA) experienced a significant decline, falling 11.45% to $0.9780, marking its largest single-day loss since January 19.

This sharp drop highlights the increased volatility within the cryptocurrency market. Cardano’s market capitalization currently stands at $35.04 billion, accounting for 1.00% of the total crypto market value. Previously, ADA’s market cap had peaked at $94.80 billion, reflecting the steep decline from its all-time high.

BrokerReviewRegulatorsMin DepositWebsite
🥇Read ReviewFCA, CySEC, ASIC, MAS, FSA, EFSA, DFSA, CFTCUSD 100Visit Broker
🥈Read ReviewFSCA, FSC, ASIC, CySEC, DFSAUSD 5Visit Broker
🥉Read ReviewCySEC, MISA, FSCAUSD 25Visit Broker
4Read ReviewASIC, BaFin, CMA, CySEC, DFSA, FCA, SCBUSD 200Visit Broker
5Read ReviewASIC, FCA, CySEC, SCBUSD 100Visit Broker
6Read ReviewFCA, FSCA, FSC, CMAUSD 200Visit Broker
7Read ReviewBVI FSCUSD 1Visit Broker
8Read ReviewCBCS, CySEC, FCA, FSA, FSC, FSCA, CMAUSD 10Visit Broker
9Read ReviewASIC, CySEC, FSCA, CMAUSD 100Visit Broker
10Read ReviewIFSC, FSCA, ASIC, CySECUSD 1Visit Broker

Over the last 24 hours, ADA’s trading range fluctuated between $0.9715 and $1.1508, underlining the prevailing uncertainty. Despite this recent downturn, the token has posted a 3.38% gain over the past week, signaling mixed sentiment among traders.

Key Figures:

  • Price Range (24H): $0.9715 – $1.1508

  • Market Cap Decline: From $94.80B to $35.04B

  • Weekly Performance: +3.38%

Broader Market Pressures Impact ADA

Cardano’s decline aligns with broader market trends, as major cryptocurrencies also faced downward pressure.

  • Bitcoin (BTC) fell 4.37% to $99,967, holding a market cap of $2 trillion, which represents 57.23% of the total crypto market.

  • Ethereum (ETH) dropped 3.82%, trading at $3,182, with a market cap of $384.59 billion, or 11.00% of the overall market.

Cardano’s trading volume over the past 24 hours reached $2.82 billion, representing 0.98% of total cryptocurrency transactions. This underscores investor interest despite the recent decline.

Cardano’s Technical Outlook and Key Levels

ADA remains 68.44% below its all-time high of $3.10, recorded on September 2, 2021. The cryptocurrency has faced several setbacks due to:

  • Market Trends: A shift in investor focus from altcoins to blue-chip cryptos.

  • Regulatory Scrutiny: Increased oversight from global regulators.

  • Economic Pressures: Inflation and interest rate hikes dampening risk appetite.

However, Cardano’s strong blockchain fundamentals, emphasizing scalability and sustainability, continue to attract institutional interest.

Key Technical Levels to Watch:

  • Immediate Resistance: $1.139

  • Next Resistance: $1.250

  • Immediate Support: $0.906

  • Critical Support: $0.810

Cardano (ADA) Price Chart - Source: Tradingview
Cardano (ADA) Price Chart – Source: Tradingview

Technical indicators show ADA trading slightly below the 50-day EMA at $1.046, signaling cautious sentiment. The broader symmetrical triangle pattern suggests a potential breakout, with traders awaiting volume confirmation. Holding above the pivot point at $1.043 could maintain a bullish bias, while a break below could invite further selling.

Conclusion:

Cardano’s current position indicates a cautious market, with key resistance at $1.139 and support at $0.906. As traders watch market developments, the upcoming WEF Annual Meetings and regulatory decisions could influence future price action.

Key Insights:

  • ADA struggles below key EMAs, signaling caution.

  • Resistance at $1.139 must be cleared for further upside.

  • Breaking below $0.906 could trigger deeper losses.

This analysis presents a clear roadmap for traders to navigate the evolving market landscape.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments