Cardano recently underwent a Chang upgrade on its Layer-1 blockchain, introducing a range of new features and improvements. Despite this, the price of ADA has experienced a significant drop, raising concerns among investors and traders.
At the time of writing, Cardano (ADA) was down 2.7%, trading at $0.3335 with a daily trading volume of $307.4 million and a market cap of $11.75 billion. The recent price drop has led to liquidations totaling $731.46K, with a majority of long positions being liquidated, indicating strong selling pressure.
Technical indicators suggest that bears are currently in control of ADA’s price movement. The token is trading near the lower boundary of its Bollinger Bands, potentially indicating an oversold condition. However, the Moving Average Convergence Divergence (MACD) line is below the signal line, further confirming the downward trend. The Relative Strength Index (RSI) is also below the neutral threshold of 50, suggesting selling momentum without reaching oversold territory.
The Aroon indicator points to a predominantly bearish trend, with Aroon Down at 100% and Aroon Up at 35.71%. This indicates strong downward momentum and weak upward movements. Analyst Crypto Yapper has identified a Falling Broadening Wedge pattern in Cardano’s price chart, suggesting lower lows and higher highs with increasing volatility over time. Breaking above the upper trendline could lead to a sharp reversal in price.
Despite the Chang upgrade and the introduction of new features on the Cardano blockchain, the price of ADA has experienced a significant drop. Technical indicators and market analysis point towards further downside potential, with selling pressure dominating the market. Investors and traders should closely monitor the key levels and indicators to assess the future price movement of Cardano.
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