Cardano (ADA) Price Movements Have Worried Investors

Cardano price movements have worried investors since the token is facing a decline. The crypto experienced substantial price swings

Cardano price movements have worried investors since the token is facing a decline. The crypto experienced substantial price swings after its consolidation pattern collapsed.

Consequently, market analysts anticipate another price drop toward $0.50 or below.

Breakdown of Consolidation Range Leads to 5.48% Drop

Cardano price has shown a breakdown from its consolidation zone. The crypto experienced a 5.48% decrease on April 3 due to massive market selling pressure.

ADA was in a consolidation pattern before the dip. The sudden breakdown has led to an increase in bearish sentiment, as traders have shifted focus to the potential for further declines.

As a result, the price decline has intensified investor worry since it is trading price below key resistance levels.

The price experienced a temporary recovery phase after the breakdown which did not succeed in sustaining upward movement.

Whales Exit, Selling 120 Million ADA in 48 Hours

More so, Cardano price has encountered further downward pressure because of whale selloffs.

Analyst Ali Martinez has pointed out that Cardano whales moved 120 million ADA in 48 hours causing their ADA holdings to decrease to 5.71 billion.

Large whale selling activities create market-wide bearish forecasts due to their impact on market sentiment.

The reduction of whale ownership in Cardano has resulted in enhanced market volatility for the Cardano network.

Cardano market movements caused by whales trigger immediate market responses from retail investors who track whale trades closely.

The reduction in whale holdings indicates that the token’s future prospects have lost the confidence of major investors who are displaying negative outlooks.

Meanwhile, recent analysis pointed ADA price continued downward pressure because whale investors sold approximately 200 million ADA in March.

Due to the substantial selling pressure, ADA continues to struggle to remain above its crucial $0.60 support point.

Analysts predicted a price move toward $0.31 if Cardano cannot break through its key resistance levels, suggesting a deeper market correction.

In addition, data from IntoTheBlock has shown the distribution of ownership among key Cardano holders by holding time frames.

There are three categories of Cardano holders; Hodlers, who hold the asset for over a year; Cruisers, holding the asset between one and twelve months, and Trader, holding the asset for less than a month.

Notably, the Hodlers decreased by 0.22%, while the Cruisers increased their number by 6.77%.

Technical Indicators Point to a Decline to $0.50

Meanwhile, Cardano price is encountering major resistance as its price approaches crucial support points.

Technical market signals point toward another downswing that could possibly reach a low of $0.50.

This target is based on Fibonacci levels and other key metrics that signal further downside potential.

The Relative Strength Index (RSI) is below the midpoint which shows that bullish power is quickly fading away.

The bearish signal stems from the death cross formation pattern between the 50-day and 200-day exponential moving averages (EMAs).

Additionally, the Moving Average Convergence Divergence (MACD) analysis displays a bearish pattern since the MACD line is below the signal line.

Current bearish market momentum indicates future price decreases until bullish indicators emerge.

The histogram’s negative bars add bearish evidence while showing few positive indicators.

Moreover, the Bull Bear Power (BBP) analysis shows decreased activity.

The selling pressure has surpassed buying pressure because the BBP indicator has negative values.

These factors demonstrate sustained downward pressure on Cardano price thus raising the likelihood of prices moving to below $0.50 soon.

At the time of writing, Cardano price is trading at $0.6482, showing a 1.09% decline over the past 24 hours.

The price recently fluctuated between $0.6374 and $0.630, with support at $0.60.