Cardano (ADA), the 10th largest cryptocurrency by market capitalization, fell to $0.60 in the early Wednesday session as its drop from the April 13 high of $0.668 reached its fourth day.
At press time, ADA was down 4.7% in the last 24 hours to $0.606 and will mark its fourth straight day of dropping if today ends in losses.
Bitcoin (BTC) and other major cryptocurrencies fell more than 3% as Tuesday’s rise was followed by profit-taking throughout the Asian morning hours on Wednesday, as expected. Cardano’s ADA plummeted to an intraday low of $0.60.
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ADA’s drop to $0.60 marks a roughly 10% decline from its recent highs. The correction has closely tracked the current uncertainty on the market, in which traders have exited risk assets.
Rebound ahead?
ADA exhibited strong volatility over the weekend, rising from $0.618 to a high of $0.667 before undergoing a substantial correction. Trading data shows that volume increases with downward price swings, indicating that selling pressure remains persistent.
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While some accumulation looks to be taking place at lower levels, potentially creating a foundation for recovery, ADA presently confronts significant overhead resistance from its daily moving averages of 50 and 200 at $0.708 and $0.746.
The daily moving average of 50 provides immediate overhead resistance, highlighting the negative trend. Momentum indicators suggest oversold scenarios, which could provide short-term relief.
Another possibility is that ADA is consolidating in a large range between $0.51 and $0.77 before making any substantial moves.
Source: https://u.today/cardano-ada-dips-hard-can-it-bounce-from-060