Cardano’s (ADA) price has recently dropped to $1, which has attracted the attention of investors and experts. This downtrend comes after a significant price action, as the rest of the cryptocurrency market has experienced a pullback. Some traders are now taking a breather and waiting for important trigger points that could influence the markets in the next few days.
The total cryptocurrency market cap was hit with a massive liquidation, where $1.76 billion worth of assets were liquidated within one day. This led to massive sales pressure for the most popular cryptocurrencies like Bitcoin and Ethereum. Cardano was not insulated from the pullback, and its price fell by almost 10%. As of press time, ADA has plummeted to $1.03, and the trading volume of Cardano spiked by 109%, trading at $3.85 billion in the same period.
Analyst’s ADA Price Prediction
In a Tuesday X post, analyst Ali Martinez discussed his take on the ADA price trend. He compared the current price fluctuations to 2020, when Cardano followed a similar trend before a massive rally. Martinez said he would still purchase ADA even if the price decreased in the next few days. He further stated that if ADA remains firm, in the near future, it can climb to $4 or even $6.
ADA’s 20% Drop Looms: What Traders Should Know Right NowHowever, Martinez also pointed out that Cardano had traded below the crucial support of $1.20. This level had indeed been characterized by a lot of buying, with 93,000 addresses buying 2.54 billion ADA at that price.
RSI and Market Sentiment
According to CoinGlass, Cardano Futures’ open interest declined by 25%, showing investors have a rather conservative approach toward the future. Still, the cryptocurrency’s Relative Strength Index (RSI) is at 53, which means it is neither overbought nor oversold.
Nevertheless, ADA remains one of the most demanded assets in the cryptocurrency market. ADA could rebound to $2 in the coming weeks if it maintains support above $0.644 and avoids a breakdown.
