As Bitcoin retests $25,000, the price of Cardano falls, casting doubt on the viability of the bull market.
Cardano (ADA), one of the leading cryptocurrencies in market capitalization, is grappling with a challenging market environment, with its price weakening further amidst Bitcoin’s retest of the critical $25,000 zone.
The recent setback has raised concerns about where Cardano is headed and whether the Bulls can regain their power. The question is whether the current market weakness presents an opportunity for the bulls to stage a remarkable comeback and propel Cardano toward a new upward trajectory.
Cardano Struggles to Stabilize Amid Persistent Selling Pressure and Price Volatility
With Cardano currently priced at $0.282786, experiencing a modest 8.1% rally within the past 24 hours, the cryptocurrency has endured a significant decline of 24.3% over the last seven days, highlighting its susceptibility to price volatility and selling pressure. This downward spiral follows a retreat from ADA’s peak price level in 2023 when it reached $0.462 in mid-April before plummeting to lows of $0.221 in December. Since then, the coin has managed to recover from its losses partially.
However, technical indicators for the ADA/USD pair signal a notable negative trend. The recent breach below the critical support level at $0.2779 suggests the potential for further selling pressure. Analyzing the price movement through tools like the Fibonacci retracement tool and the Relative Strength Index (RSI) reveals insights into ADA’s potential price levels. The Fibonacci retracement tool, plotted between the April high and the recent June 10 low, offers clues about ADA’s future movements.
The outlook for ADA’s price heavily depends on Bitcoin’s performance and overall market sentiment. With increased trading volumes and persistent price decline, ADA may be dragged further down to support levels at $0.22 or even $0.164 if bearish sentiment persists and Bitcoin fails to transition into a bullish trend.
Currently ranked seventh on CoinMarketCap, Cardano boasts a 24-hour trading volume of $595 million, with a market capitalization of $9.3 billion. The circulating supply of ADA stands at 34,903,977,012 coins, while its maximal supply reaches 45,000,000,000,000,000 ADA coins.
Nevertheless, there is a glimmer of hope for ADA bulls if Bitcoin manages to regain a bullish momentum, mainly if the Federal Open Market Committee (FOMC) adopts a dovish stance.
Investors must remain vigilant and closely monitor these developments as the cryptocurrency market remains influenced by various factors, including market sentiment, Bitcoin’s performance, and global economic events.