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Cardano tests short-term recovery but faces resistance and a whale sell-off. Can $ADA avoid a drop below $0.5346?
Amid a sudden spike in crypto market volatility, Cardano struggles to stay above $0.60. With the breakdown of a consolidation range, the market anticipates a steep correction.
Currently, Cardano is trading at $0.6612, with an intraday recovery of 1.63%. Will the short-term recovery prevent a price plunge to $0.50?
Cardano Price Analysis
On the daily chart, Cardano’s price trend shows a recent breakdown of the consolidation range. The bearish breakdown occurred with a 5.48% drop on April 2, triggering a selling opportunity.
However, despite the global economic uncertainty, $ADA’s price trend has seen a minor rebound, creating the possibility of a morning star pattern. Cardano formed two consecutive bullish candles, but following the range breakdown, this short-term recovery may only be a retest.
The retest struggles to overcome the 38.20% Fibonacci level, which coincides with the lower range of the consolidation pattern. Due to the prevailing downtrend, the increased bearish pressure warns of a death cross between the 50-day and 200-day exponential moving averages. This could trigger a trend reversal and a selling opportunity.
The relative strength index (RSI) has dropped below the halfway mark, supporting the likelihood of a deeper correction. This indicates weakening bullish momentum and increasing the chances of a post-retest decline.
Cardano Price Targets
As technical indicators suggest a potential crash in Cardano prices, the Fibonacci levels provide price targets. Based on the current price trend, the range breakdown is likely to test the 23.60% level at $0.5346, which suggests a downside potential of more than 18%.
Further declines could test the long-standing descending support trendline, potentially targeting the $0.50 psychological level.
On a bullish trend, recovery above the 38.20% level could lead to testing the 50% Fibonacci level at $0.7746. Notably, the 100-day EMA aligns with the 50% level, making it a crucial resistance point for Cardano.
Whales Dump $ADA
Crypto analyst Ali Martinez highlights a significant drop in whale confidence for Cardano. In his recent tweet, Martinez reports that whales have sold off 120 million $ADA in the past 48 hours. This has reduced whale holdings to 5.71 billion $ADA, down from a peak of 5.87 billion.