ADA, the native token of the Cardano blockchain, is currently facing challenges as it struggles to maintain its crucial support level amidst market uncertainty. Today, on December 27, 2024, the overall sentiment in the cryptocurrency market is experiencing a price decline, impacting major assets like Bitcoin (BTC), Ethereum (ETH), and XRP.
The price decline in these major assets has caused a shift in market sentiment towards a downtrend, affecting the overall market dynamics.
Cardano (ADA) Current Momentum
As of the latest update, ADA is trading near $0.864, marking a price decline of over 6.9% in the past 24 hours. The altcoin is currently at a critical level, with the potential to drop by 15% if it fails to hold support and falls below the $0.75 mark.
The bearish price action has instilled fear among traders and investors, leading to a decrease in trading volume. CoinMarketCap data shows a 16% decline in ADA’s trading volume over the past 24 hours.
Cardano (ADA) Technical Analysis and Upcoming Level
Expert technical analysis indicates that ADA has recently broken down from a bearish head and shoulders price pattern. The altcoin has been consolidating below the pattern’s neckline for the past seven days. With the recent price decline, ADA’s price has reached the lower boundary of the consolidation zone, signaling a potential breakdown.
If ADA breaches this level and closes a daily candle below the lower boundary, there is a high likelihood of a 15% decline, pushing the price below $0.77 in the future. The bearish scenario will only materialize if ADA closes below the $0.85 level, which serves as the lower boundary of the consolidation zone.
On-Chain Metrics Reveals Mixed Sentiment
Despite the bearish outlook, long-term holders remain optimistic, while traders are hesitant to establish new positions, as per data from the on-chain analytics firm Coinglass. Analysis of ADA spot inflow/outflow shows a significant outflow of $4.7 million worth of ADA from exchanges, indicating potential accumulation and buying pressure.
Conversely, traders seem to be liquidating their positions, leading to an 8.2% drop in ADA’s open interest within the last 24 hours.
In conclusion, ADA is currently facing a critical juncture as it navigates market uncertainty and price fluctuations. Traders and investors are closely monitoring the altcoin’s performance, waiting to see if it can hold its crucial support level or experience further downside pressure.