Cardono’s bearish results today do not bode well as it has recently dipped below a vital support level. Lack of trading volumes in the crypto market tell a story that ends with further losses.
As it seems, Cardano may not be able to handle the pressure of the last two weeks of volatility in the markets. Today’s drop saw ADA hit below the vital $.50 support level generating $1.4 million in liquidations across crypto derivatives exchanges. Selling pressure on this current price could increase the chances of a steeper correction.
Cardano may be escaping a symmetrical triangle that has developed on its 4-hour chart. Its Y axis suggests that ADA had a downtrend of 33.5% when it hit below the $.50 support level. A candlestick close below 50% Fibonacci retracement level at around $.48% will most likely confirm the outlook.
The odds will most likely continue to support the bear so long as ADA stays below $.55. A sustained four hour candlestick close could be what shifts the pessimistic outlook.
The last free weeks for the crypto market have been uncertain with high levels of pessimism on the Fear and Greed Index. Furthermore, the onchain technical indicators support the notion that the negative sentiment has not taken its full effect on Bitcoin, showing that the market’s bottom is not yet here. While investments during low sentiment periods has boded well for investors, there is indication of a steeper downturn yet to come.