Cardano (ADA) price has struggled to rally beyond the 200 weekly Moving Average (MA) since early December last year. With a fully diluted valuation (FDV) of around $26 billion, the large-cap altcoin faces short-term weakness similar to Bitcoin’s.
Furthermore, ADA price has dropped about 3.4 percent in the past week to trade around 58 cents on Friday during the early New York session. Additionally, the rise of low-cap altcoins like fan tokens and AI-crypto tokens has expedited the ongoing cash rotation.
Nevertheless, Cardano (ADA) holders have seen their portfolios grow by around 167 percent since the October crypto breakout.
Cardano (ADA) Price Action
According to a famous crypto analyst Ali Martinez, ADA price is on the precipice of short-term correction based on the TD Sequential indicator on the 3-day chart. Notably, the TD Sequential indicator has previously signaled sell signals that materialized in subsequent days.
A possible weekly reversal pattern bolsters the ADA’s bearish outlook.
A possible double top coupled with the bearish divergence on the Relative Strength Index (RSI) has signaled short-term weaknesses.
According to the weekly Auto Fibonacci Retracement, the ADA price will find solid support around the 0.618 level, around 40 cents.
Market Outlook
The Cardano core developers led by co-founder Charles Hoskinson have been working on next-gen layer two scaling solutions through the Hydra head and Mithril. Cardano’s web3 ecosystem currently has around $378 million in Total Value Locked (TVL) and $18 million in stablecoins market cap. As a result, the Cardano network is well-positioned to capitalize on the macro crypto bull run in the coming quarters.
Source: https://coinpedia.org/price-analysis/is-cardano-price-about-to-crash-how-low-can-ada-price-plunge/