The post Cardano (ADA) Price Crashes 50%! Bears Dominate as Technicals Worsen appeared first on Coinpedia Fintech News

Cardano (ADA), a major player in the cryptocurrency world, has seen its price fall sharply, dropping 50% from a high of $0.81 in March to $0.385. Despite a recent positive move by the SEC, which confirmed ADA is not a security, the token continues to struggle with significant selling pressure.

This situation has left traders and analysts worried about its short-term future.

It’s Been a Rough Road for Cardano

In the past four months, Cardano has experienced a substantial decline. Its price fell by 50% from its March peak and then dropped an additional 60% before stabilizing somewhat in mid-July. This sharp decrease highlights the ongoing negative sentiment in the market.

Sell Pressure Builds

Even though ADA has shown some recovery recently, it remains well below its earlier highs. Major trading platforms like Binance and OKX are seeing rising negative funding rates, which suggests that the bearish trend is still in play. This persistent selling pressure points to a continued downturn.

On a positive note, the U.S. Securities and Exchange Commission (SEC) has confirmed that ADA is not considered a security. This regulatory clarity could be beneficial for ADA’s future, providing a small ray of hope amid the current challenges.

Technicals Don’t Look Good

From a technical perspective, ADA’s outlook is still bleak. The price recently dropped by 4.6% to $0.385, with a risk of further declines if market conditions do not improve. The ADA chart shows a pattern of lower highs and lows, with the price trading below both the 50-day and 200-day exponential moving averages (EMA).

The crucial support level is around $0.30, and if bearish momentum continues, ADA might fall to its yearly low of $0.3165.

What Should Investors Do?

Despite the bearish trend, some analysts believe there might be a chance for a rebound. A report from Santiment highlights a recent spike in negative funding rates, which can sometimes signal an oversold condition. 

Historically, such conditions have led to sharp recoveries as sellers are forced to buy back at higher prices. However, this strategy requires caution as prices could continue to drop if the market views ADA as excessively oversold.

The Chang Hard Fork

Looking ahead, the upcoming Chang hard fork could be crucial for Cardano. Scheduled to improve the platform’s smart contracts, this upgrade may play a significant role in ADA’s future performance. If successful, it could provide the boost needed to change current market sentiment and support ADA’s recovery.

Also Read : Crypto News Today: FOMC Holds Rates Steady, Bitcoin and Ethereum Price Decline

ADA is in turmoil. Where do you see it going? Let us know!

The post Cardano (ADA) Price Crashes 50%! Bears Dominate as Technicals Worsen appeared first on Coinpedia.org.