Cardano [ADA] price risks free falling amidst global sell-off

Cardano [ADA] has been no longer immune to the panic selling that is currently engulfing the broader crypto market. The native token fall by 60% from its all-time high of $3.02 on 2nd September 2021. ADA saw a drop in value of 10.06% on Saturday making it one of the largest one-day percentage losses since Wednesday on October 2, this year.

The move further pushed the altcoin’s market cap downwards to $47.9 billion, which is approximately 2% of the total cryptocurrency market cap. At the time of writing, the asset is changing hands at $1.38 with a 24-hour trading volume of $2.87 billion. Cardano’s market cap was found to be at $45 billion. In the daily hours, the 6th ranked cryptocurrency registered a minor gain of 0.02% but was down by almost 9% in the past seven days.

What does Cardano [ADA] Price Chart Indicate?

In the 4-hour chart, the concluding green candles of the Awesome Oscillator [AO] are gearing towards the upswing in the market. However, the Klinger Oscillator [KO] after undergoing a bearish crossover continued moving below the equilibrium layer further indicating a downtrend in the price of the coin. On a similar path, the Chaikin Money Flow [CMF] hovering below the zero line is projecting weak inflows but an increasing amount of capital outflows in the asset’s market.

The Bollinger Bands [BB] depicted in the above 1-day chart does not indicate any volatility in the asset market. The MACD attempted for a crossover on the upside following a mild recovery. However, the increasing sell pressure favored the bearish narrative. On the trading aspect, the Relative Strength Index [RSI] nearing the 30 mark is signaling the impending oversold zone, and a further downtrend would confirm the same.

So, is it all over for Cardano Investors?

Though from the price perspective, Cardano has not been able to cross the $2 mark since mid-November, however development on the network has been overall healthy both on GitHub and in terms of DeFi. As a matter of fact, many prominent protocols in the ADA ecosystem like an upcoming DEX SundaeSwap, Genesis Auction House, among others have been rapidly growing.

Lipika Deka: Lipika is a crypto-journalist at TWJ. A graduate in economics and finance, she has a keen interest in the political and socio-economic facets of blockchain technology and the cryptocurrency industry.