ADA in Danger of Sliding Back to $2, With Cardano Declining?

Altcoin News

Cardano (ADA) has had a good run in the crypto market this year.  As a result, the ADA has reached a major landmark on its path to becoming one of the top ten cryptocurrencies in terms of market capitalization.

Currently ranked third after topping DOGE, XRP, and BNB, Cardano (ADA) trades at $2.36 with a 0.1% loss on the daily chart. The third-largest crypto by market cap is down 5.8% every week.

Going back, the crypto experienced a wave, with a major drop on September 7th, followed by a rather quick recovery into the high range of its current values. Cardano (ADA) was trading at $2.70 at the time, with support at $2.60, $2.47, and $2.30. Cardano’s slump continues and the bears’ final stumbling block is the latter support mark.

Cardano (ADA) could also resume its upward trail if the bulls retake higher levels. Meanwhile, Cardano (ADA) keeps moving below a trend line formed in the past few days. As shown in the chart below, it appears Cardano’s (ADA) downside risk will increase.

Source: CoinMarketCap

The Impact of Bitcoin on Cardano (ADA) and Other Altcoins

Bitcoin (BTC) is seen as the father of crypto. Twelves on, and Bitcoin remains unwavering even amid newer coins springing up. Many consider Bitcoin as a form of digital gold. Some consider Bitcoin to be a secure vault that can support other cryptocurrencies as they are developed.

As such, Bitcoin’s (BTC) price action could be a “determining factor for other altcoins in the crucial days for the entire crypto market”, says Analyst Justin Bennet.

On the other hand, there are scenarios where Bitcoin could rise and other altcoins like Cardano (ADA) bleed.

However, the analyst advised that investors should keep track of the Bitcoin (BTC) dominance for risk management. More so, investors seem to feel more unsure about the direction of the crypto market.