Cardano

bullish

2024

Drops

<p>After peaking at $0.80, Cardano dropped by 66%. Let’s examine ADA’s future prospects together.</p>
<h2 id="h-situation-du-cours-du-cardano-ada">Cardano (ADA) Price Situation</h2>
<p>After hitting a low below $0.24, Cardano was buoyed by the overall crypto market and reached the $0.68 level in two months. At this price level, we can observe that Cardano experienced a contraction down to $0.45. It was on this last support level that ADA then marked its highest level since May 2022 at $0.80. These fluctuations allowed Cardano to appreciate by more than 235% in four months. Unfortunately, this resistance level triggered a sell-off pushing ADA back to its support at $0.45. Although a notable interest can be observed, Cardano’s price has continued to decline gradually, recently hitting a low around $0.28. It is noteworthy that this bearish pressure was fueled by the overall decline in the crypto market.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1">
 </div>
</div>
<p>ADA recently showed slight buying support, allowing the crypto to reach $0.40. At the time of writing, the <a href="https://www.cointribune.com/en/crypto-markets/cardano-ada-en/" target="_blank" rel="noopener noreferrer nofollow">Cardano price</a> is trading around $0.32. Thus, it seems that ADA is struggling to find buying support. Regarding the crypto trend, it can be said that it is currently bearish, as evidenced by Dow theory and the 50 and 200-day moving averages, both of which are trending downwards. On the side of the crypto’s momentum, it is not surprising that it is bearish, as demonstrated by Cardano’s price itself. However, it can be noted that oscillators are gradually diverging from the crypto’s price.</p>
<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdcEoS9Hm4AyFMmPTqZJ4S20SuTefZrufg2Sd5nPp5qSmbs3w-CoxVjM8bUMbMT4y9tmoCTnLwebhisuqnneicLf17p0UT0crJfm8rm3uSigc4scmLqR2yq_2ybgX1daskIM3lJzPKqpVR_uJwVX0PZ35E?key=uJ_qxD2ThUBMYfaNGUanKQ" alt="ADA/USD Chart (1D)">
 <figcaption class="wp-element-caption">
  ADA/USD Chart (1D)
 </figcaption>
</figure>
<p><em>The current technical analysis was conducted in collaboration with Elie FT, an investor and trader passionate about the cryptocurrency market. Today he is a trainer at </em><a href="https://www.family-trading.com/" target="_blank" rel="noopener noreferrer nofollow"><em>Family Trading</em></a><em>, a community of thousands of proprietary traders active since 2017. You will find Lives, educational content, and support around financial markets in a professional and friendly atmosphere.</em></p>
<h2 id="focus-on-derivatives-ada-usdt">Focus on Derivatives (ADA/USDT)</h2>
<p>Following Cardano’s decline, the open interest of ADA/USDT perpetual contracts slightly increased before falling back down, just like its price. This occurred as the CVD revised downward. Regarding the funding rate, we see a slight increase during Cardano’s latest bullish impulse, but it quickly dropped after the current correction. All these indicators demonstrate prevailing selling pressure on Cardano derivatives. Regarding liquidations, they are mostly on the buyers’ side, occurring during minor downward fluctuations. This reveals a low tolerance for decline on the buyers’ part.</p>
<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXduePv3Z-SX9PBDW4uN4I6EMkqScPnJ4-DYpLaxoqyPP3q8wqA4A71hZVdrSs-W7c2Lsaj9-xr06SE2TsN2sSNEwpt8gluy-U6h2qBnsd2hKtc5lOq67lvzUzOgtnnoOQwHxekzoJWEkjsjJVbq3stlIe_7?key=uJ_qxD2ThUBMYfaNGUanKQ" alt="Open Interest / CVD /Liquidations &amp; Funding rate ADA/USDT">
 <figcaption class="wp-element-caption">
  Open Interest / CVD /Liquidations &amp; Funding rate ADA/USDT
 </figcaption>
</figure>
<p>The liquidation heatmap of ADA/USDT over the past three months reveals that Cardano recently hit a notable liquidation zone around $0.31. It seems to have sparked buyer interest in the crypto, as Cardano’s price slightly rebounded. Now, the closest liquidation zones to the crypto’s current price are primarily above its price. A small zone can be noted below $0.37. Higher and more significant, we can then note the zones above $0.40 and $0.45. The approach of the price towards these levels could trigger a massive number of orders, increasing the risk of a period of heightened volatility for the crypto. These zones are thus crucial points of interest for investors.</p>
<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXe_V3U7Aexbl-5AaieDZs96WOL9tCB8WyKAhqhqiWv1Ca1N5o648c-XFqr_7lJYxJwh4X7CsyADJ0qaGMVeNm6LOOvmDaVcdEQJTJ-xYecskaWiNmrSCReTl1FO0DOSm0dJF4ltn8HpJqteEFcTCpCzRQQ?key=uJ_qxD2ThUBMYfaNGUanKQ" alt="ADA/USDT Liquidation Heatmap (3 months)">
 <figcaption class="wp-element-caption">
  ADA/USDT Liquidation Heatmap (3 months)
 </figcaption>
</figure>
<h2 id="forecast-for-cardano-ada-price">Forecast for Cardano (ADA) Price</h2>
<ul>
 <li>If Cardano’s price remains above $0.30, a bullish continuation could be anticipated, with a surpassing of $0.40. The next resistance to watch would be around $0.45. If this bullish movement continues, achieving $0.50 could be possible, representing an increase of over 57%.</li>
</ul>
<ul>
 <li>If Cardano’s price fails to stay above $0.30, a return to $0.28 would be possible. The next key support, in case of a continued bearish movement, would be around $0.24-$0.25, with a risk of descending to $0.22, a decline of about 30%.</li>
</ul> 
<div class="tradingview-widget-container tradingview--mini-chart">
 <div class="tradingview-widget-container__widget"></div>
 <div class="tradingview--mini-chart--dark">
  <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-mini-symbol-overview.js" async>{"symbol":"BINANCE:ADAUSD","width":350,"height":220,"isTransparent":false,"autosize":false,"dateRange":"12M","trendLineColor":"rgba(253,64,19,1)","underLineColor":"rgba(253,64,19,0.6)","underLineBottomColor":"rgba(253,64,19,0)","locale":"en","largeChartUrl":false,"colorTheme":"dark"}</script>
 </div>
 <div class="tradingview--mini-chart--light">
  <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-mini-symbol-overview.js" async>{"symbol":"BINANCE:ADAUSD","width":350,"height":220,"isTransparent":false,"autosize":false,"dateRange":"12M","trendLineColor":"rgba(253,64,19,1)","underLineColor":"rgba(253,64,19,0.6)","underLineBottomColor":"rgba(253,64,19,0)","locale":"en","largeChartUrl":false,"colorTheme":"light"}</script>
 </div>
 <div class="tradingview-widget-copyright"><a href="https://fr.tradingview.com/symbols/ADAUSD/?exchange=BINANCE" rel="noopener noreferrer nofollow" target="_blank"><span class="text-primary-color">ADAUSD chart</span></a> by TradingView
 </div>
</div> 
<h2 id="conclusion">Conclusion</h2>
<p>Cardano experienced a significant rise followed by a sharp contraction, reflecting the volatility of the crypto market. Although ADA shows signs of recovery, it remains in a bearish trend, with limited buying support and weakened momentum. Thus, it will be essential to closely monitor the price’s reaction to key levels to validate or revise the current forecasts. It is also important to stay vigilant against potential fake outs and market squeezes in each scenario. Finally, let’s remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also evolve quickly based on more fundamental factors.</p>

Crypto: Cardano (ADA) Drops By 66%, An Opportunity To Seize? Technical Analysis Of September 5, 2024

Table of Contents

Cointribune EN

Other articles published on Sep 5, 2024

What is Telegram's Meme Coin DOGS?

SEC vs. Ripple: Appeal Looms as Payment Deadline Nears

Satoshi-Era Bitcoin Wallet Resurrected With Millions in BTC and 500,772% Profit

Floki's Valhalla Partners with OG Esports as Official Jersey Sleeve Sponsor

WazirX Hacker Moves Another $12M in ETH to Tornado Cash

Crypto : Unexpected surge in XRP trading volume, +45 % in 24 hours !

Join our free newsletter for daily crypto updates!