As the crypto market experiences one of its worst crashes in recent years, Cardano (ADA) has hit a new low. The coin has fallen below $0.5 for the first time in months. Although this is already bad news, the worse is yet to come for ADA. Here is what you need to keep in mind:
In the last 24 hours alone, ADA has crashed by over 30%
It’s the first time in months that Cardano has breached the $0.5 mark
More losses are expected to come as the broader market faces a steep correction
Data Source: Tradingview
Cardano price analysis – Difficult times ahead
After falling nearly 65% from its highs in May, you would think that the worse is over for ADA. But the current bearish trend around the coin is only getting started. In fact, after falling below $0.5 for the first time in months, we expect the coin to continue the steep decline.
It is possible that ADA will bottom towards its next $0.35 support before it tries to find any demand. This will represent a fall of around 25% from the current price. ADA would also lose over 100% in value from its highest price this month.
The only positive sign in this setup is the RSI reading. This momentum indicator for ADA has moved towards the oversold territory. The risk of a big sell-off is therefore relatively limited. But as investor sentiment in crypto wanes, it will be harder to find ADA buyers in the coming days.
Should you hold or Sell ADA?
As Cardano accelerates losses, it can be easy just to sell off and limit your exposure. But we still think that ADA is one of the few coins in the market worth holding. Even though the coin will not return to $1 soon, we expect it to retest $0.75 after it bottoms at $0.35.
The post Cardano (ADA) hits new lows – Why the worse is still to come appeared first on Coin Journal.