Cardano price analysis: will probably fall to $ 0.5

As can be seen from internal data, most of Cardano’s government units were purchased at current prices above current levels. In addition, the one-week view of the Cardano market shows that the 100-week moving average, which is the main support for the price, is on the verge of breaking.

According to Crypto Briefing, Cardano is at more than 74% of its highest historical record of $ 3.16 set in early September 2021. Although Cardano’s recent collapse seems big enough, internal and technical indicators show that it is probably a further decline in prices.

Cardano seems to have lost a vital level of support, which could lead to a sharp price adjustment.

In the last two weeks, about 35% of the market value of Cardano, called “Atrium Killer”, was lost, and the price fell from $ 1.26 on February 8 to the lowest level in 2022, 0. It reached $ 81. Despite the significant losses that Cardano has suffered, this digital currency may face another downward trend.

The Investor Profit and Loss Index (IOMAP), presented by IntoTheBlock’s, shows that Cardano has lost a vital demand engine. Nearly 63,700 addresses have bought more than 1.4 billion Cardano in the past at an average price of $ 0.96. Now that Cardano’s prices have fallen below this support zone, signs of a weak trend may encourage market participants to sell their assets to avoid further losses.

The IOMAP index actually shows how many currency units have made a profit for their holders and how much they have made a loss.

As the index shows, Cardano does not have a significant level of support in its downward trajectory, and another downward trend could lead to a significant decline.

Cardano price analysis: will probably fall to $ 0.5
IOMAP index.

From a technical point of view, the downtrend is likely because Cardano, the seventh largest digital currency in terms of market value, has lost its 100-week moving average (MA) as a key support level. The current weekly candlestick has not yet closed below this moving average, but there are many pessimistic prospects for it at the moment. The 200-week moving average shows the next level of support at $ 0.50.

Cardano price analysis: will probably fall to $ 0.5
Cardano price chart; Weekly Cardano / Dollar Market View (blue line is 100-week moving average).

Due to a lack of maintenance, monitoring this weekend (until next Sunday) is needed to confirm the loss of the 100-week moving average. If the price can return above this index, Cardano could potentially prevent a drop to $ 0.5. In addition, it may even gain strength to return above the 50-week moving average at $ 1.6.

Cardano’s Price Analysis: The probability of falling to $ 0.5 first appeared in digital currency.

Leave Your Comment

Your email address will not be published.

Supportscreen tag