- Cardano price drops below $0.40 as Bitcoin drags cryptocurrencies into recession.
- ADA price sees traders holding their breath while avoiding new lows for the week.
- Expect a 20% decline on the back of the Federal Reserve statement later today.
Cardano (ADA) price keeps its together quite good this Wednesday as other major cryptocurrency pairs are nearing key levels, with Bitcoin flirting around $20,000 and ETH nearing $1,000. Markets got blindsided by an emergency meeting from the ECB, hinting that Frankfurt is seeing issues in the rising spreads from Italy after they announced stopping with their bond buying program as of July. With traders on edge, ADA price is refraining from making new lows for now, but the Federal Reserve meeting later today could be just that one event to many in order to keep price action in check.
ADA holds it together for now, with traders on edge
Cardano price sees mayhem in the markets this Wednesday with surprise meetings from the European Central Bank just hours before the Fed, the US central bank, is set to become more hawkish as initially perceived. Traders, however, are keeping their act together in Cardano as it refrained from making new lows while big brother Bitcoin is on the cusp of breaking below $20,000. Eventually, the lower break should come for Cardano as most stars are aligned for ADA price action to drop lower.
ADA price will drop towards $0.37 at the monthly S1 support level, which would take out the low of May 12 at $0.384. The Relative Strength Index still has some room to the downside, opened up before hitting the oversold barrier. Expect BTC to break below $20,000, with either the Fed or ECB statement to be enough as a trigger to do so.
ADA/USD daily chart
As plenty of headline risk is possible this Wednesday, a positive surprise could bring some relief and soothe the tone in the markets a bit. That would be ideal for cryptocurrencies to move in and rally. ADA price would quickly pop back above $0.50 and swing possibly back to $0.60 before testing the monthly pivot and the 55-day Simple Moving Average as caps on the upside.
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
Editors’ Picks
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
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.