Amid the recent downturn in the market, Cardano (ADA) has shifted towards a bearish trend and is expected to continue its decline in price. As of January 8, 2024, the sentiment in the cryptocurrency market has taken a turn for the worse, with a 5.5% drop in the overall market.
Technical analysis of Cardano (ADA) indicates that the recent market crash has led to a breakdown of the consolidation zone that ADA had been trading within, between the levels of $1.047 and $1.11. This breakout has now turned ADA bearish, with predictions suggesting a potential 8% decline to the support level of $0.95.
If the downward trend persists and ADA fails to hold the $0.75 support level, there is a possibility of a further 20% drop in price, reaching the next support level at $0.75. Currently, ADA is trading around $1.01, experiencing a price decrease of over 10% in the past 24 hours, with a high of $1.15. The trading volume for ADA has also seen a significant increase of 57.7% during this period.
Despite the bearish market sentiment, on-chain analytics firm Coinglass has reported that long-term holders have been accumulating ADA. Data shows that exchanges have witnessed an outflow of over $36.16 million worth of ADA, the highest since December 18, 2024. This outflow from exchanges to wallets is seen as a sign of accumulation, indicating potential buying pressure and suggesting a potential upside rally in the future.
As traders and investors navigate through this challenging market environment, it will be essential to closely monitor key levels such as $0.75, as they could signal a critical turning point for ADA’s price trajectory. Stay informed and stay vigilant as the cryptocurrency market continues to evolve.