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TheCryptoBasic

05/24/2024

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Cardano Price Forecast: ADA dips 13% as Investors Turn to ETH

Cardano’s price has dipped 13% from its weekly timeframe peak, sliding as low as $0.46 after the US Securities and Exchange Commission (SEC) approved Ethereum ETFs on May 23.  Cardano Loses 13% After Ethereum...

Cardano Price Forecast: ADA dips 13% as Investors Turn to ETH

Cardano’s price has dipped 13% from its weekly timeframe peak, sliding as low as $0.46 after the US Securities and Exchange Commission (SEC) approved Ethereum ETFs on May 23. 

Cardano Loses 13% After Ethereum ETF Approval.

Following the approval of Ethereum ETFs, crypto investors have started redirecting capital towards ETH and other altcoins hosted on the pioneer smart contract network.

Meanwhile rival Proof-of-Stake (PoS) networks like Cardano (ADA) and Solana (SOL) have received the short-end of the stick the amid recent market shuffle. The rapid inflow of funds into Ethereum ETFs threatens to exert bearish pressure on ADA price action.

ADAUSD 2024 05 24 15 36 41
Cardano ADA Price Action after Ethereum ETF Approval

Looking at the chart above, ADA price has declined 13.64% from the weekly timeframe peak of $0.51 registered on Tuesday, May 21. Meanwhile, Ethereum price, on the other hand, has continued on its upward trajectory. After 25% weekly gains, it has held firmly above the $3,700 support.

A similar trend of negative divergence between ADA and ETH price action has been observed in Solana markets, another rival Proof of Stake network, struggling for traction as Ethereum grabs investors’ focus.

This suggests that crypto investors have shown preference for ETH, and other Ethereum-hosted assets like PEPE which has recorded two new all-time highs in the 2 consecutive weeks, breaking into the top 20 ranked crypto assets by market capitalization.

Within 5 months post-launch, Bitcoin ETFs pull over $58 billion BTC holdings. As investor brace up for inflow of billions into Ethereum ETFs over the next couple of weeks, ADA price and other rival PoS network could struggle to break out of the current downtrend.

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ADA Price Forecast: Bulls Swoop in to Defend $0.45 Support

Cardano’s price is currently hovering around the $0.46 territory and has declined rapidly from its $0.51 weekly timeframe peak. But after a 13% drop-off in the last 3 days, on-chain data trends show that Cardano bulls have swooped into action, preventing a downswing below $0.45.

IntoTheBlock’s Order Books chart below tracks the number of active ADA buy/sell orders currently listed across 13 prominent crypto exchanges, including Binance and Coinbase.

Cardano (ADA) Price Forecast

Cardano (ADA) Price ForecastAs seen above, Cardano Bulls have mounted orders to purchase 225 million ADA at the average price of $0.46. Meanwhile, bears have only placed 207 million ADA up for sale around the current prices.

This suggests that after a 3-day-long selling frenzy, ADA bears may be showing signs of fatigue. With bulls now dominating the markets with a much higher buy-wall, ADA price will likely hold firm above the $0.45 support in the near term.

If the support buy-wall caves, ADA price could tumble towards the next psychological support cluster at $0.40 could be on the cards.

However, with the prevailing bullish sentiment surrounding the broader crypto markets and the rising buy orders, Cardano’s price will likely avoid another double-digit downswing, but it will consolidate within the $0.45 to $0.48 channel in the coming days.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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