Cardano Price Drops 8% Will ADA Crash Below $1?
After weeks of strong performance, Cardano (ADA) has faced a sharp correction, losing over 8% in the past 24 hours. The price now sits at approximately $1.10, raising concerns among investors about further declines. This correction comes as Bitcoins price dipped below $100K, triggering a broader market pullback of over 3% in the past 24 hours.
Why Did Cardano Price Crash?
Cardanos price correction is part of a broader market movement. The entire cryptocurrency market saw a pullback after Bitcoin fell below the key $100K level. When Bitcoin corrects, it often causes a ripple effect across the entire market, leading to declines in major altcoins like Cardano.
Here are the key reasons for Cardano's recent price crash:
1 Bitcoin Dropped Below $100K
Bitcoin is the anchor of the crypto market. When Bitcoins price declines, investors often pull liquidity from altcoins to manage their overall risk. This drop below $100K triggered a market-wide correction of around 3%, with Cardano experiencing one of the steepest declines at -8%.
2 Market-Wide Adjustment
The broader crypto market experienced a typical bull-market adjustment. In bull runs, its normal for markets to "cool off" after major rallies. These pauses give investors a chance to take profits and lock in gains, which ultimately strengthens long-term price stability. However, when these corrections become too frequent or deep, they can signal an upcoming crash.
3 Profit-Taking by Traders
Many investors likely took profits on Cardano's recent gains, which explains the sell-off. As ADA recently climbed above $1.20, its natural for traders to take profits at resistance levels. When enough investors do this at the same time, it creates selling pressure, causing the price to dip.
Cardano Price Today: ADA Price Analysis
After the recent correction, the current price of Cardano (ADA) is $1.10, reflecting a sharp 8% decline in just 24 hours. Over the past few weeks, Cardano has been riding the bullish momentum seen in the broader crypto market. However, the latest pullback has put ADA in a risky position.
ADA/USD 1-month chart - TradingView
If Cardano is unable to reclaim the $1.20 resistance in the coming days, it could signal further declines. A failure to reclaim previous highs is often seen as a bearish signal, and traders may interpret it as a sign that selling pressure is increasing.
Is This Correction a Cause for Concern?
Corrections during a bull market are considered healthy and normal. They allow prices to "breathe" and prevent overextension, which keeps the market sustainable. But not all corrections are the same.
When a coin fails to reclaim its previous high after a correction, its seen as a warning sign. If Cardano cant break back above $1.20, it could fall into a bearish pattern where lower highs and lower lows begin to form a classic signal of a potential market downtrend.
Heres what to watch for:
- If Cardano regains $1.20, it will likely resume its bullish trend.
- If Cardano fails to reclaim $1.20, it may drop to $1 or even $0.80 in the coming weeks.
Cardano Price Prediction
The big question for investors is whether Cardano can reclaim $1.20 or if it will continue its downward slide. Based on current market sentiment and technical analysis, heres what could happen next:
1 Bullish Scenario
If the broader crypto market stabilizes and Bitcoin recovers above $100K, Cardano could follow suit. In this case, Cardano could retest $1.20 and possibly push higher, targeting $1.40 or beyond. For this to happen, buying volume must increase, especially near the $1.10 support.
2 Bearish Scenario
If Bitcoin continues to struggle below $100K, Cardano could face further pressure. Without support from the broader market, ADA could fail to reclaim the $1.20 resistance. If this happens, Cardano could test $1.00 as the next support. If bearish momentum intensifies, ADA could fall further to around $0.80, a key support level that has held in the past.
3 Key Levels to Watch
- $1.20 Key resistance. If ADA breaks above, it could resume its uptrend.
- $1.00 Key psychological support. If it breaks, ADA could see increased selling pressure.
- $0.80 Major support level. If the price falls this low, it could indicate a prolonged bearish phase.
ADA/USD 2-hours chart - TradingView
Will Cardano Fall Below $1?
The possibility of Cardano falling below $1 cannot be ruled out. Crypto markets are extremely volatile, and with Bitcoin trading below $100K, the downward pressure on altcoins remains strong. If Cardano fails to reclaim $1.20, a drop to $1 or even $0.80 is possible.
Historically, psychological support levels like $1 tend to act as strong buying zones. But if that level is broken, market sentiment often turns extremely bearish, which could fuel a deeper sell-off.
That said, the overall market sentiment remains bullish. With Bitcoin still near $100K, many investors believe that Cardano could still bounce back. If the market flips bullish again, ADA could quickly rebound to $1.20 or higher.
Read more: https://cryptoticker.io/en/cardano-price-prediction-crash-below-1-dollar/
Text source: CryptoTicker
