Cardano (ADA) was under pressure recently and dropped almost 12 to 15%, sliding below $ 0.6 for the first time in almost two months. It currently oscillates around the brand from $ 0.59 to $ 0.60, which is a critical support zone for Altcoin. Although the wider market of cryptography is not in panic mode, the ADA price seems to lose steam.
What lowers the Cardano price (ADA)?
One of the main reasons for the decline is the lower technical momentum that accumulates on the graphics. Technical indicators also report downward pressure, which should be strong and can continue unless buyers work. ADA also forms a possible falling corner model, which is generally a sign of bullish inversion, but it is not yet confirmed. Therefore, if the price breaks below the current support, the next stop could be about $ 0.57, or even $ 0.5.
The above graph shows the price blocked in a descending parallel channel while maintaining a crucial support area. Currently, the price has reached the same support area between $ 0.6 and $ 0.61, but has fewer signs of a positive rebound. If the price does not trigger a rebound, a drop in the following support at $ 0.51 is viable. However, a rebound can increase levels to $ 0.65, which seems unlikely because the RSI is about to reach the lower threshold. A drop in Surolon beach could validate a downward continuation.
Long -term holders make profits
The chain data reveals another red flag: “the age consumed” – a metric which follows the movement of the older parts which were not processed for a significant period, has just received a summit of 9 months. This increase points out the decreased confidence among investors, because an increase in metric suggests that long -term holders are cashed and therefore a negative impact on the ADA price could be imperative.
This behavior of long -term holders seems to be worrying because the markets, especially Cardano, could face excessive sales pressure. This could make the ADA more difficult to find the positive momentum in the short term, keeping the short -term targets activated. This could be one of the main reasons why the Cardano price has trouble holding the ground.
What is the next step for the ADA price?
Now, the big question: is it just a drop or something more serious?
If Cardano can last above $ 0.6, we could see a rebound to $ 0.66, or even $ 0.70. But if this support breaks, $ 0.57 is the next defense line. A drop below? Then $ 0.50 could quickly get into play.
The current Cardano price action (ADA) is a mixture of technical weakness, long -term holders who are selling and the feeling of a lower trainer. Although it is not time to panic, it is certainly a moment to watch closely.
