Is Cardano Going to Zero? ADA Price Slips 3% as Crypto Markets Rally – Will This Mining Protocol Go Viral?
Recent weeks have seen a strong recovery by #8 ranked cryptocurrency Cardano (ADA), yet ADA Price has slipped -3% despite an impressive resurgence in the ecosystem’s valuation, leaving some dejected holders asking ‘is Cardano going to zero?’.
The downtick contrasts Cardano’s steady return to profitability, which saw the valuation of all-Cardano based tokens hit a new all-time high at $450M (previously $330M).
$ADA
Cardano has successfully retested the orange level as support and now enjoying a strong rally to the upside
The green resistance ahead is next
Following the black path perfectly thus far#ADA #Crypto #Cardano https://t.co/mCVMaq02Dj pic.twitter.com/Nr8AH0gb2v
— Rekt Capital (@rektcapital) December 14, 2023
Yet, despite the price drop, prominent traders on crypto Twitter remain bullish on the short-term potential for ADA price.
With ADA reeling away from a hot-patch of resistance around $0.675, Cardano is currently trading at a market price of $0.635 (representing a 24-hour change of -1.27%).
Downside movements appear to have been triggered by a historic resistance level stemming from June 2o22.
Much of Cardano’s explosive +71% month-on-month gains has been pushed by solid footing above an aggressively ascendant 20DMA (sat at $0.48), which formed a golden cross with the 200DMA (sat at $0.31) on November 8.
However, recent movements to the local high at $0.675 have created a significant margin of 24% divergence between ADA price and moving average support – creating a clear zone of risk amid retracement movements.
Yet, technical structure looks strong here with an emergent bullish pendant suggesting further upside could be on the cards soon.
This conflicts with a severely overheated RSI, which is displaying a strong bearish
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