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Is Cardano’s Fall To $ 2 More Than A Bearish Breakout?




For the past few weeks, Cardano kept the altcoin market and its investors engaged as the asset hit a new all-time high of $ 3.10. However, since it broke above $ 3, Cardano did not demonstrate the same strength, as for the past 7 days, the asset regularly fell on the chart.

Now, as the value of ADA fell along with the collective market crash, the question is whether a period of correction attracts the third-largest digital asset.

A 45-day wait

ADA / USDT in the trade view

As seen in the table, Cardano lost the support of the Exponential and Simple Moving Average-20, for the first time since July 21. During the entirety of the rally, the asset did not break below the moving averages, acting as immediate support.

At press time, a huge red candle was observed. It was the first sign of correction for the asset. The reduction in the last 24 hours was $ 2, but there was a quick correction above $ 2.50.

From a profitability standpoint, more than 80% of addresses were making a profit and only 15% were making a loss, as identified in the table below.

Source: intotheblock

With Cardano already reaching $ 2, asking for another floor could be risky. However, the collapse indicated that profit-taking could be in full swing for the next few days.




Between $ 1.70 and $ 2.58, there are over ~ 4.45 billion ADA tokens accumulated by 280k addresses. The median value of these ADA tokens held around $ 2, which may explain the immediate ADA bounce from the $ 2 mark. However, the adjusted transfer volumes were also indicative of a shift that took place just before. of the collapse.

At $ 2.85, did Cardano holders pull the trigger?

Source: Messari

Yesterday, just before the accident, it was observed that the average transfer value in Cardano reached a new peak that has not been seen in the whole year. At around $ 2.85, the average transfer value topped $ 0.5 million, indicating that massive investors are on the move.

A few hours later, the market began to decline collectively, leading to the eventual drop to $ 2. From this information, it can be inferred that the ADA drop was not completely coincidental, as investors in whales might as well. have played a role in it. As usual, retail was not ready for the downturn and sell-offs were witnessed across the board. At press time, as the market structure continued to fracture, the dust was beginning to settle, for the time being.

This is a machine translation of our English version.




TAMMY SEWELL
Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

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