Cardano (ADA) is facing a challenging market environment as cryptocurrencies weaken further due to Bitcoin retesting the $25,000 region. As one of the leading cryptocurrencies by market capitalization, Cardano is heavily influenced by broader market trends.
This setback has raised questions about Cardano’s future trajectory and whether the bulls can regain control. Will the recent market weakness provide an opportunity for the bulls to return and push Cardano onto a new upward trajectory?
With selling pressure persisting, Cardano faces price volatility. According to CoinMarketCap, Cardano (ADA) is currently trading at $0.277, up 24% in the past 4 hours. However, the cryptocurrency has seen a significant decline of over XNUMX% in the past 20 days.
This decline comes after ADA price dropped from a high of $0.462 in mid-March to a low of $0.221, then falling to $0.277 in April. Since then, the token has managed to partially recover losses.
Technical indicators for the ADA/USD pair show a significant bearish trend. Recently breaking below the key support level of $0.2779 indicates the possibility of further selling pressure.
To analyze price trends, Fibonacci retracement tools and Relative Strength Index (RSI) provide valuable insights. The Fibonacci retracement tool drawn between the high in October and the recent low on the XNUMXth of the XNUMXth month shows potential levels for ADA price movement.
Additionally, since mid-April, the RSI has remained below the midpoint, further entering oversold territory at the time of this analysis. This suggests a significant increase in selling pressure and implies bearish sentiment.
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ADA price outlook depends on BTC and market sentiment
The market conditions for ADA remain uncertain due to selling pressure and price volatility. If bearish sentiment persists and Bitcoin fails to turn bullish, ADA could be dragged to support levels of $0.22 or even $0.164.
Cardano has a 24-hour trading volume of $5.95 billion, ranking seventh on CoinMarketCap. Cardano’s current market capitalization is $9.3 billion. The circulating supply of the cryptocurrency is 34,903,977, with a maximum supply of 45,000,000,000 ADA coins.
Meanwhile, if Bitcoin can reverse its bullish uptrend, especially if the Federal Open Market Committee (FOMC) takes a dovish stance, there is a glimmer of hope for ADA bulls.
Given that the cryptocurrency market continues to be influenced by various factors such as market sentiment, Bitcoin performance, and global economic events, investors must remain vigilant and closely monitor developments.
