Cardano Price tumble 16%; Is ADA undervalued at current levels?

• Cardano Price tumbled 16% overnight and eroded a big portion of market cap.
• ADA Price hit a fresh 52 week low at $0.2200 and downfall still continued.
• Cardano Price Prediction for 2023 has now turned bearish till it below $0.3500.

Cardano Price tumbled 16% in a single day and eroded the big portion of the market capitalization. It formed a highly bearish pattern and hit a fresh 52 week low at $0.3500. 

ADA Price broke down the crucial support of $0.2974 with a high momentum which has hurted the sentiment of investors. The sudden increase in the selling volume indicates fear and investors run to protect the previous profits. 

Cardano Price has dropped below both 50 day and 200 day EMA shows downtrend has just begun. However, due to sudden sell off the EMAs have gone far away from the market price. Therefore, minor consolidation is expected near to yearly lows for bringing stability in the prices. 

Cardano Price performed well in the past few months and kept the price far away from the yearly lows. But the recent downfall was shocking which eroded the previous gains in just a few days. 

Cardano Price is trading at $0.2501 with intraday decline of -15.25%. The 24 hour volume to market cap ratio 0.1031. The pair of ADA/BTC is trading at 0.00000978 with a single day decline of -12.21%. 

The price pattern of both pairs is bearish and sellers are dominating on the higher levels. 

Double digit correction in Cardano Price

Cardano Price fell by 34% in the current week which is the biggest one week fall in 2023. The momentum of the downfall is high which decreases the possibility of the sharp bounce from the lower levels. 

ADA crypto holds a rank 7 in terms of market capitalization. But, a sudden double digit correction in top most crypto has raised concern for the long term investors. 

ADA Price is near to $0.2012 which is now acting as an immediate support in the coming days. The correction might halt near $0.2012 and enter into the consolidation. 

The technical analysis suggests, The fall in the Cardano crypto has made the price cheap and undervalued. The crypto lovers should keep cardano in their portfolio for the long term. 

ADA Price may negatively impacted by BTC 

ADA Price formed a bearish engulfing pattern on a weekly time frame and trading near the Year 2021 breakout level. The market leader Bitcoin price is now trading below $26,000 and forming a bearish pattern. 

The correlation between ADA and BTC is 0.69 which is quite high. Therefore, If BTC falls further than it might also negatively impact the prices of Cardano. 

The MACD curve is collapsing down and displays a negative crossover. It indicates that bearish momentum may continue for a few more days. Well, the RSI at 17 tells us a different story: the price is oversold and a short term pull back rally is possible. 

Conclusion

Cardano Price tumbled 16% in a single day and down by 34% in the current week. It 

eroded a big portion of market capitalization and hit a fresh 52 week low. 

The technical analysis suggests Cardano price is oversold and the correction might take halt near $0.2012. 

Technical levels

Resistance levels: $0.3000 and $0.3500

Support levels: $0.2012 and $0.1800

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.