Cardano (ADA), one of the top performers in the 2024 crypto rally, is now facing significant losses due to widespread market volatility. Having dropped more than 14.24% in a single day, its monthly losses have surpassed 35%.
Crypto Market Current Situation
With Bitcoin dropping below the $87,000 mark for the first time in three months, Cardano has slipped under $0.65. Over the past 24 hours, ADA has plummeted by 10.05%, triggering liquidations worth $8.47 million. As bearish pressure mounts, the potential break below the $0.60 support suggests a possible further decline to $0.50.
Technical Analysis of Cardano (ADA)
On the ADA/USDT 4-hour chart, Cardano is forming a descending triangle, with lower highs pressing against a strong support level. A breakdown below this support could trigger further bearish momentum. The price is also struggling to hold above the 20-day EMA, emphasizing resistance at $0.73. The break below the 0.236 Fibonacci retracement level at $0.7531 signals weakening bullish momentum. Key technical indicators like Chaikin Money Flow and BBPT indicate significant selling pressure, while the RSI level at 22.91 confirms oversold conditions, potentially hinting at a rebound.
Impact of ETF on Cardano
The U.S. Securities and Exchange Commission's (SEC) review of NYSE Arca's proposal to list a Grayscale Cardano ETF could be a pivotal event for institutional adoption. If approved, the ETF could become a significant catalyst for increased activity and price momentum in Cardano.
Cardano continues to face significant market challenges, though the potential approval of a Cardano ETF in the future could be a turning point for the asset. Key support and resistance levels are crucial in shaping the future price movements.
