Cardano Loses Key Support Level: What’s Next for ADA Price?

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Written By Maya Cantina

Tue, 2/04/2024 – 14:56

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In a turbulent start to the month, the crypto market witnessed a significant downturn, with major cryptocurrencies experiencing substantial declines since the beginning of April. Among them, Cardano (ADA) stands out as it plummeted by 10.4% in the first two days, reaching $0.582. This marks the lowest ADA price since March 19, intensifying concerns among enthusiasts of the popular cryptocurrency.

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Of particular concern is the loss of a crucial support level at $0.62 per token. This critical threshold, which Cardano had previously bounced back from on March 5 and March 19, now poses a significant challenge. With the failure to hold this support level for the third time in the last 30 days, uncertainty looms over the future trajectory of ADA’s price.

ADA to USD by CoinMarketCap

Analysts are divided on the potential outcomes. Some foresee a scenario reminiscent of mid-March, where Cardano found its local bottom and buyers stepped in to drive the price upwards. This optimistic view suggests that history may repeat itself, with ADA experiencing a resurgence in demand and reclaiming lost ground.

However, others remain cautious, pointing to the possibility of further downward pressure. If buyers fail to materialize once again, the price of Cardano could face continued downward momentum. The next crucial support level to watch is at $0.55 per ADA, which could serve as a pivotal point for determining the cryptocurrency’s short-term trajectory.

The coming days will undoubtedly be critical for Cardano and its investors, as the cryptocurrency seeks to find stability amid turbulent market conditions.

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