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Cardano (ADA), within the last seven days, soared to a high of over $0.40 as traders anticipated further climbs. However, that uptick has failed to trigger sustained momentum for the altcoin, as it has again dipped in value in the last 24 hours.
Cardano faces volatility issues
As per CoinMarketCap data, Cardano suffered a 10% crash as some holders engaged in profit taking as sentiment remained bearish. Notably, in the last 24 hours, Cardano slipped from an intraday peak of $0.4051 to $0.3791 as volatility hit the market.
As of press time, Cardano is changing hands at $0.3818, which represents a 5.22% decline. The trading volume is, however, still in the green zone by 21.48% at $696.73 million. Despite this, closer analysis indicates that there is weak buying interest from market participants to balance the selling pressure.
The current price fluctuation is linked to Bitcoin’s drop by over 5%, which sparked crypto-wide fears. With Cardano breaching the $0.38 support level, all eyes are on the $0.37 support, and ADA’s ability to stay above this level could determine if the asset has the momentum for a rebound.
Any further price slips might cause panic-selling among holders of the coin, and this could impact general performance. To avoid this, Cardano bulls have to step in to defend this next support to prevent further decline in the value of ADA.
Cardano would need to reclaim the $0.40 level and trade consistently within the range before stability can return to the asset’s market. Failure might increase bearish sentiment, which could see losses extend toward the $0.30 zone.
Can ADA hit $0.40 to ease pressure?
It is worth mentioning that in the previous week, Cardano Founder Charles Hoskinson had predicted a bullish trajectory for ADA. However, the gains have been short-lived as the coin is currently battling volatility.
In the broader Cardano space, a whale transferred 150,000,000 ADA valued at about $63.3 million. The transaction sparked speculation as market participants noticed the movement, which occurred during a time of intense volatility.
With the loss of gains, market observers are watching the price performance with keen interest. Any slip below $0.37 might cause traders to readjust their positions and dump the coin. In order for Cardano to recover, bulls might need to step in and push prices to levels higher than $0.40.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team