Cardano (ADA) has experienced a decline in its price amid the current market crash in the cryptocurrency market. The overall cryptocurrency market has dropped by 5.5% today, January 8, 2024.
This market crash has caused a breakdown of the consolidation zone that ADA had been facing between the $1.047 and $1.11 levels. According to expert technical analysis, this breakout has turned ADA bearish, and there is a strong possibility it could initially decline by 8% to reach the support level of $0.95.
If the price decline continues and ADA fails to hold the support level of $0.75, there is a possibility of another 20% drop in the future, reaching the next support level at the $0.75 mark.
Currently, ADA is trading near $1.01 and has witnessed a price decline of over 10% in the past 24 hours. During the same period, trader and investor participation increased significantly as the altcoin’s trading volume jumped by 57.7%.
Amid the bearish price action and market sentiment, some long-term holders have been accumulating ADA. Exchanges have witnessed an outflow of over $36.16 million worth of ADA, the highest since December 18, 2024, according to data from spot inflow/outflow reported by Coinglass, an on-chain analytics firm.
The outflow of assets from exchanges to wallets is considered a potential sign of accumulation in the cryptocurrency landscape. This metric highlights potential buying pressure and hints at ideal buying opportunities.
Traders and investors should closely monitor key levels such as $0.75, as it could be a make-or-break situation for ADA.
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