The recent weekend saw a significant sell-off in the cryptocurrency market, with layer 1 blockchain Cardano bearing a substantial impact. The asset witnessed a steep decline from its new lower high of $0.624 to the $0.45 level, marking a 30% drop over the week. Amid fluctuating market sentiment and the approach of the much-awaited Bitcoin halving, Cardano’s price is striving to maintain its footing above the $0.45 threshold.

Also Read: BDAG Shines as Bitcoin Price Stumbles & Cardano Innovates

Cardano’s V-Top Reversal Signals Seller Control Amid Market CorrectionC

Cardano Price Analysis| Tradingview

Amid the broader market correction, the Cardano price developed a V-top reversal from the high of $0.81 in mid-March. This pattern representing complete dominance of sellers plunged the ADA value 45% to trade at the $0.449 mark.

The aforementioned support coinciding with the 61.8% Fibonacci retracement level creates a high demand zone for ADA buyers. The renewed buying pressure is evidenced by the tail rejection in the daily candle of April 13th, holding the price above $0.449. 

The sidelined buyers can monitor this asset for the week and check its sustainability above the horizontal level. Furthermore, for buyers to regain a better confirmation for recovery, they reclaim the 20-day EMA around the $0.52 mark.

This breakdown would signal a reversal opportunity for the Cardano coin, but for momentum trading the ADA price should challenge overhead resistance at $0.56 to $0.625.

However, the crypto analytics firm Santiment reports a growing trader focus on Bitcoin, especially regarding holding strategies amid market downturns following the Bitcoin halving. As altcoins falter, the attention is turning towards Bitcoin’s stability and fiat liquidations amidst rising market FUD.

Traders have been increasing their discussions toward #Bitcoin and the viability of #hodling through a potential extended correction past the #halving. With #altcoin sectors like #AI, #gaming, #DeFi, #memecoins, and others retracing heavily, expect that the crowd focus will… pic.twitter.com/kPfnwZwE1X

— Santiment (@santimentfeed) April 16, 2024

Thus, the top altcoins inducing Cardano may face a delay before joining the post-halving market rally.

Technical Indicator:

Directional Movement Index: The wide spread between the DI+ and DI- slope accentuates an aggressive correction trend in action.
Exponential Moving Average: The 20-day EMA acts as dynamic resistance against the occasion of bullish bounces in ADA price.

The post Cardano Price Analysis: Will $0.45 Support Hold Strong Amid the Market Sell-off? appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am