You are here: Home / Opinion / Market Analysis / Cardano [ADA] Plummets on Wednesday As Price Correction Takes Over Crypto Market
After a fun run-up of the charts, the cryptocurrency market seems to have hit a correction this week. Several major coins witnessed their supports break with the rest of the price peripherals left hanging haphazardly. Cardano [ADA], which had climbed to rank 3 during the bull run, plummetted on Wednesday as the bear took control of the ecosystem.
The current price correction was predicted right as Bitcoin was skirting its all-time high of $65k. At press time, Cardano was trading for $1.98 with a total market cap of $64.895 billion. After a drop of 10 percent on the day, ADA’s trading volume had fallen to $4.2 billion. The current bear run also caused Cardano to slip to number five on the cryptocurrency charts.
Cardano 1 hour chart:
The past 24-hours were hectic for Cardano as the cryptocurrency crashed to monthly lows. The immediate support had not settled but the last recording was clocked at $1.96. Consecutive red candles populated the current price action as the investors backed out of a receding market.
Relative Strength Index: The graph crashed below the oversold threshold. This indicated massive sell-offs by holders who did not want to see their portfolios crash.
Chaikin Money Flow: According to CMF, the capital inflow had taken a hit during the current price atmosphere. A look at the past week revealed that CMF was pulsing sinusoidally, awaiting a crash.
Parabolic SAR: All the markers stayed above the price candles as the momentum shifted drastically. Only a price stabilization would result in a positive markup.
Cardano 1 day chart:
Even in the long run, Cardano’s price action had been hit. The daily support shifted to $1.02 as the cryptocurrency registered one of the strongest candles since the beginning of September.
Chaikin Money Flow: After staying on the zero line, the graph dipped below it on Wednesday. This was a sign that the capital leaving the market was more than the money coming in.
Parabolic SAR: The PSAR markers in the long term have not moved from the top of the price candles since mid-October.
Relative Strength Index: The RSI faced a vertical fall right as the market woke up. As more users continue to sell their ADA assets, the graph is expected to fall deeper into the oversold zone.