The price of Cardano (ADA) has plummeted over 10% in the last 24 hours and is facing downward pressure in the short term. Predictions indicate that if the support line on the chart is breached, a more significant decline may follow.
According to data from the cryptocurrency analysis platform CoinStats, as of the 11th, Cardano is priced at $0.4161 (approximately 612 Korean Won), down more than 10% from the previous trading day. The short-term downtrend continues, and bearish signals are also detected in the technical indicators. The hourly candlestick chart shows support at $0.4117 (approximately 606 Korean Won), but since most of the daily average true range (ATR) has been consumed, analysts believe the likelihood of a sharp rebound in the short term is low.
If there is no rebound before today's close, the price may further decline to $0.40 (approximately 589 KRW). It is particularly noteworthy that the support level of $0.4091 (approximately 602 KRW) on the mid to long-term chart. If this level is broken, the accumulated selling pressure in the market may be released, and the downward trend could continue to the range of $0.37 to $0.40 (approximately 544 to 589 KRW).
Another concern is that a 'bearish candlestick shadow' is forming. Although there are still a few days until the weekly close, if the current trend continues, the possibility of the price testing $0.35 (approximately 515 KRW) at the same time as the main support level collapses cannot be ruled out.
This decline is interpreted as not being due to issues with Ada coin itself, but rather following the overall weakness of the market. Since most major altcoins have shown similar downward trends, it is observed that the time to confirm support levels may be extended rather than a short-term rebound.
Article Summary by TokenPost.ai
🔎 Market Interpretation
Ada coin is trading near the short-term technical support line; if the main support line is broken, it could plummet to $0.35. Analysts believe this reflects the overall bearish sentiment in the market.
💡 Strategy Highlights
Using a short-term trading strategy based on balanced moving averages and daily average true range (ATR) is effective. Rather than focusing on rebounds, more attention should be paid to the falling support area and adjusting the entry timing.
📘 Terminology Explanation
- ATR (Average True Range): An indicator measuring market volatility, a higher value indicates greater price fluctuation.
- Support Line: The price level at which the price tends to stop falling and bounce back during a decline.
TP AI Notes
This article uses a language model based on TokenPost.ai for summarizing. The main content of the text may be omitted or deviate from the facts.
