- The recent market-wide crash has hurled Cardano into the Bears’ territory.
- With Cardano Bulls nowhere to be found, investors are growing increasingly apprehensive.
- Cardano bears now eye the yearly low as ADA holders hope for a miraculous comeback.
The crypto market recently experienced heavy blows back to back, which triggered substantial losses across the industry. Cardano bore the brunt of this impact by registering double-digit losses and being heavily jolted out of its range into Bearish territory.
Investors and holders grow increasingly concerned, questioning Cardano’s ability to recover. Will Cardano stage a comeback in the following weeks, or will the Bears send ADA into the depths?
Cardano Jolted into the Bears’ Claws
Cardano’s recent hurdles have significantly overpowered the Bears, allowing them to assume full control over ADA’s price action as they crash into their territory without resistance from the Bulls or the Whales.
Amid the recent crypto market downturn, Cardano has plunged 18% from $0.29 to $0.23, wiping millions in open interest and triggering losses exceeding $9 million across ADA long positions. While substantial, Cardano’s loss wasn’t as gigantic as Ethereum’s $300 million and Bitcoin’s $500 million liquidations in the same period.
The market-wide crash shook the market out of $1.2 billion across crypto-tracked futures, reportedly ranking as one of the largest since the FTX fiasco. To make matters worse, the total crypto market capitalization plummeted by 10%, eradicating a staggering $116 billion.
While the exact cause of the tumultuous turn remains uncertain, community members have pointed toward the SEC’s decision to delay all Bitcoin Spot ETF applications. Some users speculate SpaceX’s alleged sale of $373 million worth of Bitcoin triggered the crash, while others attribute the market’s upheaval to Evergrande filing for bankruptcy in the US.
It’s worth noting that some of the news above is yet to be confirmed and comes from unreliable sources. They also hold weak arguments as the main cause since it happened hours before the crash. Investigations for the culprit remain as investors find themselves perplexed by the sudden events.
Will Cardano Recover?
At the time of writing, ADA exchanged hands at $0.25, down 11%. The recent crash has unleashed chaos in the market, leading to increased sell orders and investor panic.
With the Bears in control, ADA now sits firmly in their territory. Over the following weeks, Cardano could tap its yearly low at $0.21 and stabilize within the $0.25 to $0.26 range, much akin to the price action preceding the SEC’s crackdown.
Considering current macro conditions, the likelihood of Cardano Bulls reclaiming control remains low. For the investor camp to chargeback, Bitcoin has to rally above $30,000 to effectively overturn the bearish outlook, allowing altcoin to reclaim their lost valor.
On the Flipside
- It’s worth noting that ADA is 92% down from its all-time high of $3.1 at press time.
- Market dynamics can be unpredictable, so it is important to consider alternative perspectives and opinions when evaluating the potential future performance of ADA.
- The recent crypto market crash led to a rise in the percentage of Cardano holders experiencing losses, reaching 89%.
Why This Matters
Cardano’s performance over the following weeks is crucial to retain its investors’ confidence. Its recent struggles have reduced its yearly growth to 5%, greatly hindering its plans to reclaim $1. Holders are growing apprehensive and weary of the asset and will look to exit if ADA continues to plunge.
More on Cardano:
Cardano Continues to Tumble as ADA Falls Below $0.27 Mark
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Source link: https://dailycoin.com/cardano-crashes-into-bearish-territory-ada-taps-0-24/
