ADA Experiences an 8.70% Drop; Crypto World Watches Closely

ADA experienced an 8.70% drop over the last 24 hours.
The rest of the crypto market also posted losses over the same time period.
Should the current support level hold, we would see ADA enter into a 4-10% bullish price rally over the next 2-3 days.

Cardano (ADA), one of the coins that everyone in the crypto space is watching, has experienced a 24-hour price fall as the rest of the cryptos in the market follow the same trend.

At the time of writing (9H40 GMT + 2), the price of ADA is around $0.4571, which is an approximate 8.70% drop in price over the last day. ADA’s price is also down over the last 7 days by just over 25%, according to CoinMarketCap.

Even though its price continued to fall, ADA’s market cap still stands at $15.46 billion — ranking it at number 7 on CoinMarketCap’s list of biggest crypto projects by market cap. Currently, ADA is ranked below Binance USD (BUSD) and above Ripple (XRP).

The daily chart for ADA/USDT shows 3 levels that investors should be aware of if ADA experiences a price upswing over the weekend.

Looking at the current level, this is the third time that the support level at $0.4600 has been tested by ADA’s price. The previous two tests were followed by bullish moves up to the third resistance level at around $0.65 as indicated on the chart. This may suggest that ADA is at its bottom.

Should ADA’s price perform a move upwards, its first challenge will be to break past the level at $0.4825, which is also the level where the 9 Moving Average (MA) line is hovering around at the moment. This will already be around a 4.3% move.

Should ADA’s price successfully breach above the $0.4825 level, the next target will be the level at $0.5525.

Of course, this bullish thesis will only hold if the current support level, which has been identified as ADA’s low, is able to hold for today and a green daily candle forms.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.