• • The price of Cardano (ADA) has dropped 2.48% in the last 24 hours.

• • ADA’s price has broken out of a 2 week-long ascending price channel recently.

• Technicals suggest that ADA’s price may drop to the next support level in the next 24-48 hours.

The Cardano (ADA) Network experienced a large surge in network activity recently as an incredible 204 billion ADA coins were transacted. This significant spike in transaction volume highlights the growing interest in the smart contract platform. Some investors may be taking profit following the recent uptrend in ADA’s price, which has been a refreshing change from the lackluster performance of the altcoin’s price.

One reason for the spike in ADA transactional activity could be the increased adoption of the platform’s smart contract capabilities. More and more projects have opted to develop their decentralized applications on Cardano, which has seen the demand for ADA tokens steadily rising.

Cardano (ADA) Current Market Standing

Cardano (ADA) is ranked as the seventh biggest project in terms of market cap, according to CoinMarketCap. It experienced a 24-hour price drop of 2.48%, taking its price down to $0.4509 at press time. The Ethereum-killer’s market cap currently stands at $12.098 billion.

Meanwhile, ADA’s 24-hour trading volume currently stands at $234.310 million following a 24-hour increase of 10.57%. Furthermore, the price of ADA is nearer to its 24-hour low at $0.3478. The altcoin’s daily high stands at $0.3614.

The 24-hour decrease in ADA’s price has brought down the altcoin’s weekly price performance. Nevertheless, the weekly performance for ADA remains in the green at +2.03%.

Cardano (ADA) Technical Overview

4-hour chart for ADA/USDT (Source: TradingView)

ADA’s price is currently resting on a key support level at around $0.3497 after it broke out of an ascending parallel price channel in the last 48 hours. ADA’s price is also currently trading below the 9 and 20 EMA lines on the 4-hour chart, which is a bearish sign.

Should the altcoin’s price close today’s trading session below the parallel price channel and the aforementioned support level at $0.3497 then ADA’s price is at risk of dropping to the next support level at around $0.3377.

Technical indicators on the 4-hour chart are bearish at press time. Currently, the RSI line on the 4-hour chart is positioned below the RSI SMA line on the 4-hour chart. In addition to trading below the RSI SMA line, the RSI line on the 4-hour chart is sloped negatively towards the oversold territory. This suggests that ADA’s price will continue to fall in the next 24 hours.

Meanwhile, the 9 EMA on the 4-hour chart is trading below the 20 EMA line on the 4-hour chart. This suggests that ADA’s price has entered into a short-term bearish cycle.

Daily chart for ADA/USDT (Source: TradingView)

ADA’s price has lost the support of the 9 EMA line on its daily chart and is on the verge of losing the support of the 20 EMA line as well. Should the altcoin’s price lose the 20 EMA support then the next key level that investors and traders should keep an eye on is the positive trend line present on ADA’s daily chart.

The trend line was formed over the course of the last 2 weeks after ADA’s price printed higher lows during this period. ADA’s price breaking below this line may result in ADA’s price dropping to the next support level at $0.3319. An early confirmation of this bearish thesis will be ADA’s price closing below the 20-day EMA line in the next 24-48 hours.

This bearish thesis is supported by the daily RSI line crossing below the RSI SMA line in the last 24 hours. Furthermore, the negative slope of the daily RSI line suggests that the Ethereum-killer’s price will continue to drop, at least in the next 24 hours.

ADA holders will also want to keep an eye on the 9-day and 20-day EMA lines. Should the 9-day EMA line cross below the 20-day EMA line, then ADA’s price will receive the sell pressure needed to bring it down to the net key support level.

Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

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