• Cardano price shows a lack of buying pressure that has resulted in an 8% slide.
  • A breakdown of the $0.375 support level could knock ADA to tag the $0.359 to $0.348 bullish breaker.
  • On-chain metrics denote the distress of holders and also depict whales’ selling spree.
  • Invalidation of the bearish thesis will occur if ADA can reclaim the $0.420 hurdle into a support floor.

Cardano price has been on a steady downtrend in line with the overall market condition. Nevertheless, a closer look reveals that ADA has more to shed before any uptrend kick-starts.

Also read: Cardano bulls struggle to push ADA higher despite developments in Ethereum-killer token

Cardano price at inflection point

Cardano price dropped 18% between April 15 and 24 and attempted a recovery soon after. Failure to climb higher, ADA shed another 8% where it currently auctions at $0.385. Just below this level is a support structure, extending from $0.375 to $0.378, which is key to where the so-called “Ethereum killer” will head next.

A breakdown of this level could send Cardano price down to retest the $0.359-to-$0.348 bullish breaker. In total, this move would constitute a minor drop of 5% to 7%. A further spike in selling pressure that flips the $0.342 support level into a resistance level could trigger another down leg to $0.324. 

ADA/USDT 1-day chart

ADA/USDT 1-day chart

Adding credence to the bearish outlook for Cardano price is the 30-day Market Value to Realized Value (MVRV). This on-chain metric is used to determine the average profit/loss of investors that purchased DOGE over the past month. 

Based on ADA’s history, a deviation below the zero-line can be termed as “opportunity zone.” For Cardano, anywhere between -9% to -18% is where reversals tend to occur. Currently, the 30-day MVRV for ADA is hovering around -6.7%, suggesting that 6.7% of the investors that purchased the tokens in the past month are operating at a loss. 

Therefore, investors should not hold their breath for a reversal anytime soon, at least not until the MVRV drops into the 9%-to-18% pocket. 

ADA 30-day MVRV

ADA 30-day MVRV

Lastly, we have the Supply Distribution that shows that investors are dumping ADA at the current price levels. The number of addresses holding between 1 million to 10 million tokens have dropped from 2,479 to 2,431 in the last week. Likewise, addresses holding between 10 million to 100 million tokens have also declined from 426 to 405 in the last week.

This trend denotes that whales are also losing interest in the performance of Cardano price in the near future and are booking profits.

ADA Supply Distribution

ADA Supply Distribution

An invalidation of the bearish thesis will occur if Cardano price can overcome the $0.420 hurdle and flip it into a support floor. In such a case, ADA will likely attempt a retest of the local top at $0.462.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Ripple's XRP set sights on $1.100 following renewed investor interest

Ripple's XRP set sights on $1.100 following renewed investor interest

Ripple's XRP rallied nearly 20% on Tuesday, defying the correction seen in Bitcoin and Ethereum as investors seem to be flocking toward the remittance-based token. 

More Ripple News
Dogecoin Price Prediction: Could DOGE ETF spark new all-time high after 130% rise?

Dogecoin Price Prediction: Could DOGE ETF spark new all-time high after 130% rise?

Dogecoin rose over 15% on Tuesday as traders anticipate a price move toward the $1 threshold following Bloomberg analyst Eric Balchunas's post regarding a DOGE exchange-traded fund.

More Dogecoin News
Hedera's HBAR rallies nearly 20% as Canary Capital files for HBAR ETF

Hedera's HBAR rallies nearly 20% as Canary Capital files for HBAR ETF

Hedera's HBAR is up nearly 20% on Tuesday as Canary Capital submitted an S-1 registration to the US Securities & Exchange Commission for an HBAR exchange-traded fund.

More Hedera News
Ethereum Price Forecast: ETH down despite hype from Beam Chain unveil

Ethereum Price Forecast: ETH down despite hype from Beam Chain unveil

Ethereum is down 1% on Tuesday despite developer Justin Drake proposing the Beam Chain, a new consensus layer that aims to ship a series of changes that will fast-track the Main chain's roadmap to faster block times and quantum resistance.

More Ethereum News
Bitcoin: Further upside likely after hitting new all-time high

Bitcoin: Further upside likely after hitting new all-time high

Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP