As the cryptocurrency market experiences a significant downturn, Cardano (ADA) has entered a bearish phase, with its price trajectory poised for further decline. The overall market sentiment shifted dramatically today, January 8, 2024, as the cryptocurrency landscape saw a substantial 5.5% drop. This change in market dynamics has left traders and investors grappling with uncertainty.
Cardano (ADA) Technical Analysis and Key Price Levels
The recent market crash disrupted a four-day consolidation period for ADA, which had been moving within a range of $1.047 to $1.11. Expert technical analysis indicates that this breakout has turned ADA bearish, suggesting that an initial decline of 8% could drive the price down to the support level of $0.95.
However, should the downward trend persist and ADA fails to sustain the $0.75 support level, analysts warn of a potential additional 20% decline, potentially reaching a new support threshold at $0.75. Currently, ADA is trading around $1.01, reflecting a price decrease of over 10% in the past 24 hours, with an intraday high at $1.15. This period has seen a notable surge in trader and investor activity, as the altcoin’s trading volume surged by 57.7%.
Significant Exchange Outflow: $36 Million Worth of ADA
The bearish sentiment affecting ADA has not only impacted prices but also stirred anxiety among market participants. However, some long-term holders are seizing this opportunity to accumulate ADA tokens. According to Coinglass, an on-chain analytics firm, exchanges have recorded an outflow exceeding $36.16 million worth of ADA during the market crash, marking the largest outflow since December 18, 2024.
In the cryptocurrency ecosystem, “outflow” denotes the transfer of assets from exchanges to personal wallets, often interpreted as a sign of accumulation. This trend suggests potential buying pressure and hints at an upside rally, providing ideal buying opportunities for astute investors. Observing key levels, such as the pivotal $0.75 mark, will be crucial for traders as it could signify a critical make-or-break point in ADA’s price trajectory.
