Cardano Technical Analysis: ADA drops $200 mn in one week
The cryptocurrency market has been riding a bearish wave, which began earlier this week. The market had reversed course after gaining the last week, when its collective market cap broke the elusive $220 billion milestone. The start of this week saw a the market’s total value drop $8 billion to $213 billion, following which on Wednesday, the market cap fell below $210 billion. At the time, the top coins in the market were all trading in the red, with XRP as the sole survivor. Now, most declining coins are experiencing a stabilizing effect after days of upswing last week. However, Cardano [ADA] isn’t one of them.
ADA price has been on a downward spiral since the start of the week and its market cap has since dropped below the $2 billion mark for the first time since the beginning of the month. This bearish movement has shaved off almost $200 million from Cardano’s market cap in less than three days.
The coin’s key resistance level was noted at $0.0839, while its key support level can be traced at $0.0749 – a level below which the crypto had slipped at the close of Wednesday. The MACD shows that the digital asset is in a bearish phase, while the 100 EMA line indicates that the altcoin is exhibiting a downtrend. At the time of writing, the hourly RSI indicator stood at 44.86, as investors offloaded the token in large sums. The trading range exhibited by the virtual currency is $0.072-$0.073, with the coin pushing against the higher extreme. At press time, the crypto slid 3.5% against the U.S. dollar and was priced at $0.0728.
The virtual currency has declined 3.1% against the premier crypto Bitcoin [BTC] and currently, one ADA can purchase 0.0000115 BTC.
Cardano began the week with a market cap of over $2 billion, after which it quickly fell. There were two brief instances where the coin’s total market value was observed at the aforementioned mark – the first instance was at 0200 UTC on Monday and the second was at 1600 UTC on the same day. Following this, the market cap began to drop. As of 1730 UTC on Tuesday, the market cap stood at $1.96 billion and it dropped 3.6% to $1.89 billion in less than 12 hours. At press time, its market cap stood at around $1.90 billion.