Cardano Price Correction to Extend 7% this Week, But There’s a Catch

Cardano Price: ADA, the native cryptocurrency of the Cardano ecosystem, has witnessed notable supply pressure since last week leading to a price fall from $0.81 to $0.61. The broader market correction bolstered this 23.2% drop triggering a breakdown from 23.6% Fibonacci retracement. Will the BTC price breakdown below the $65K psychological level further accelerate this correction trend?

Also Read: Cardano Price Analysis: Recent Downturns Spark Investor Interest, Will ADA Hit $1?

Cardano Dominates in Developer Commitment Amid Market Volatility

The mid-term trend in Cardano price is actively bullish and can be traced using a rising channel pattern in the daily chart. This chart setup formed with two ascending trendlines uplifted the ADA value from $0.24 to $0.81, registering 283% growth.

Recent data tweeted by IntoTheBlock highlights a significant trend in blockchain development activity, placing Cardano (ADA) at the forefront among top Layer 1 (L1) protocols. The platform has reported that Cardano consistently outperforms its peers in terms of weekly commits on their repositories, a measure often used to gauge developer engagement and project vitality.

Cardano is leading in developer activity amongst top L1s, consistently delivering the highest number of weekly commits. pic.twitter.com/gtYUIyeqRy

— IntoTheBlock (@intotheblock) March 18, 2024

However, the overhead supply at $0.8 coupled with the broader market correction, sparked a new correction and plunged the ADA price to the $0.62 mark. If the supply pressure persists, the sellers may extend this downfall, another 7% to retest the lower trend at $0.57.

If history repeats, the Cardano coin is likely to rebound from this support and initiate a new bull cycle within the channel pattern. With sustained buying, the post-correction rally may surpass the $0.81 barrier, registering a growth potential beyond 30%.

Conversely, a breakdown below the pattern’s support trendline will invalidate the bullish thesis, and prolong the current correction trend.

Also Read: Charles Hoskinson Addresses Cardano FUD Amid World Mobile Partnership

Technical Indicator:

• Moving Average Convergence Divergence: A negative crossover state between the MACD(blue) and signal lines(orange) reflects the short-term trend is bearish. 
• Exponential Moving Average: The ADA price trading above the 100-and-200-day EMA slope indicates the long-term trend is bullish.

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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.