The cryptocurrency market’s bleed over the past few days caused several alarm bells to go off as investors struggled to cope with the price crunch. Billions in the market cap were slashed in the last 48 hours as Bitcoin triggered the fall for the rest of its compatriots.
Altcoins such as Ethereum, XRP, and Cardano all had their 2021 gains removed during the bear crunch after which the prices stabilized. At press time, Cardano was trading for $1.26 with a total market cap of $4-.145 billion. The 20 percent drop in weekly movement brought down the daily trading volume to $6.41 billion.
Despite the crunch, many coins have recovered on the charts today. Over the last 24-hours, Cardano climbed by over 13 percent, a performance far superior than most of its peers in the top 10 crypto club.
Cardano 1 hour:
Cardano holders heaved a sigh of relief over the previous 24 hours as the cryptocurrency settled back to its earlier price groove. As ADA settled at $1.25, the immediate support had been lowered to $1.008. The current resistance in the short term clocked in at $1.45.
The upper and lower Bollinger bands converged towards the candles, a sign of an imminent price breakout. The size of the Bollinger cloud signified the range of fluctuations that had occurred over the previous 48 hours. According to the Relative Strength Index, Cardano was holding strong in the overbought zone after it crashed below the oversold line on June 22.
The Chaikin Money Flow indicator blinked green for ADA as the graph climbed in a linear fashion. This meant that the capital influx into the Cardano market was more than the capital leaving the market.
Cardano 1 day:
The daily charts painted the picture of a cryptocurrency stabilizing after a tumultuous start to the week. Cardano’s long term support at $0.81 was untouched in the recent bear run as the price took a turn for the better.
Cardano’s daily Bollinger bands diverged from each other after its pipeline hold on the charts during the price stabilization. The parallel movement by the bands corelated to the lack of major price movements at the start of the month.
Long term RSI indicated a bullish run after the formation of a u-turn on the chart. Analysts stated that the change may be due to more investors flooding the market. The CMF, on the other hand, sharply fell towards the bottom of the zero line.
Proponents of the market have reassured investors that bear runs where natural and that it is a prevlanet phenomenon across all mainstream trading ecosystems. Despite the losses, one phrase echoes strongly in the cryptocurrency space: “buy the dip”.