Despite 58% Price Bounce, Cardano’s Price May Still Sink Due to Multiple Reasons
On May 10, as the entire crypto market plunged, Cardano (ADA) was less fortunate, as it took most of the impact. A large portion of the negative impact took its toll on Cardano. Still, the week is proving to be full of shockers for the entire cryptocurrency universe.
Cardano’s Price Experienced a Rebound
Following the plunge, Cardano recorded a rebound on May 13, which saw a great surge in ADA’s price. The week-to-date (WTD) performance graph shows ADA witnessed the bottom price at $0.38. After the dip, a 58% rally helped ADA hit $0.60 (intraday high) on May 13.
Price Rebound of Other Major Cryptocurrencies
According to the market trend, Cardano is not the only major crypto to have recorded an upward retracement following the dip. Other major cryptocurrencies such as Ether (ETH) and Bitcoin (BTC) have also recorded rebounds.
The crypto market analysis confirms that Ether experienced a 25.75% price rebound, while Bitcoin experienced a 23% price rebound. Both major assets witnessed the rebounds after experiencing year-to-date lows on May 12.
Despite recording an uptrend, the continuation of the upward movement of Cardano is not guaranteed. However, there are multiple factors hinting that the high trend for Cardano may not last for long.
Capo’s Price Prediction
An independent analyst from the cryptocurrency market going with the pseudonym “Capo”, talked about ADA’s potential downtrend. Capo suggested that the bearish setup of Elliot Wave and its chart show that the fifth and final wave may pull ADA lower. As per Capo, a $0.30 to $0.35 price dip may be recorded for ADA.
Cardano Price Breakdown in the Descending Channel
The actual downward trend line for Cardano shows it is currently traveling below the projected downtrend channel. This means Cardano’s performance is much weaker than the predictions made by the analysts.
Despite the predictions, investors have a lower interest in acquiring Cardano. Such sentiments were witnessed when Cardano’s price lowered to $0.568. It was perceived that buying would intensify at this mark. However, it didn’t happen and ADA kept falling to a lower price.
As Cardano came near $0.378, buyers initiated their ADA accumulation spree, thus, creating a rebound. Despite the rebound, the selloff for Cardano was much higher than its trading volume, which weakened the trend. If the selloff continues intensifying, Cardano may continue experiencing the downtrend.
Stock Markets Keep Crashing
The pressure on equities such as tech and digital stocks is constantly rising to form the US Federal Reserve. Therefore, major exchanges dealing with tech companies such as Nasdaq Composite are experiencing huge dips.
Due to the stock market dip, major cryptocurrency assets are also facing the impact. The US Federal Reserve has recently increased interest rates plus the inflation rate increment is also adding up to the stock market crashes. As long as the stock markets continue facing the downfall, the major cryptocurrencies may continue facing downtrends.