Any port in crypto storm, in case of Cardano
As negativity and even panic blanket the cryptocurrency market, Cardano remains under heavy selling pressure but remains above critical support areas and loses less than the others.
ADA moves in consolidation range
Despite being in the downtrend, ADA traders and investors withheld the pressure incoming from bears and keep the assets inside of a consolidation range formed since the middle of May.
Unfortunately, the resistance of the 50-day moving average did not allow ADA to break out of it higher, which is why the asset retreated towards the support, which nevertheless manages to hold it back from a further fall. .
Can ADA avoid a sell-off?
Unfortunately, the long-term condition of Cardano on the market does not promise a positive price performance in the upcoming weeks or even months as ADA still remains in the falling wedges and cannot break through.
As the technical analysis suggests, ADA does not have major support levels until $0.4 and $0.2, which could become the main reason for further dips.
Though most metrics and indicators on the market suggest that Cardano is ready for another plunge down, we may see the volume slowly decreasing, which is considered as a positive sign during a bearish market.
The declining volume may suggest that the bears are slowly losing their power in the market and can no longer provide enough selling pressure to keep the asset in the downtrend.
At press time, ADA trades at around $0.45 as it sits on the local support level, which had been tested twice prior to the current sell-off on the cryptocurrency market, in which Bitcoin dropped to $23,500 and Ethereum tumbled to $950 on certain exchanges like Uniswap.
