Cardano (ADA) Price Sheds 19% As Bearish Sentiment Looms Large

Christian Encila

2 years ago

4 mins read

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Cardano (ADA) experienced a significant upswing in March, reaching a year-to-date high of $0.4622. Excitement spread among ADA investors as the price climbed, but unfortunately, it was short-lived. The price faced rejection at that level, causing ADA to plummet to the $0.3760 support level.

However, despite this setback, ADA managed to find some stability as the bulls defended this crucial support level. Throughout May, the price of ADA fluctuated above and below the support level, giving hope to investors.

However, the tides turned in June when intense selling pressure gripped the market. ADA, like many other altcoins, found itself caught in the aftermath of regulatory issues with its supposed security label. The market sentiment turned bearish, and altcoins suffered significant losses as a result.

ADA Not A Security: Gensler Once Again Getting Ahead of Himself #Cardano #cardanofeed #ADA #crypto #cardanocommunity #bitcoin #CoinMarketCap #blockchain #cryptocurrency #CardanoADA #btc $ADA https://t.co/cwM1SD0Brm

— Cardano Feed ($ADA) (@CardanoFeed) June 14, 2023

Now, the question arises: What lies ahead for ADA as the bearish sentiment continues to loom?

The Correlation Between Bitcoin Price, Altcoin Performance

At the time of writing, Bitcoin (BTC) is trading below the $25,000 level, exerting its influence on the broader cryptocurrency market. The price decline of BTC has had a profound impact on altcoins, causing a ripple effect throughout the entire crypto ecosystem.

Source: Coingecko

Altcoins, including Cardano’s ADA, have been significantly affected by Bitcoin’s downturn. ADA, currently priced at $0.259126 at CoinGecko, has experienced a 7.3% slump in the past 24 hours alone, contributing to a substantial seven-day decline of 22%. These figures illustrate the strong correlation between Bitcoin’s price movements and the performance of altcoins.

Bitcoin, being the largest and most established cryptocurrency, often serves as the bellwether for the entire crypto market. When Bitcoin experiences a price drop, it tends to instigate a domino effect, triggering a widespread sell-off across various digital assets.

This correlation stems from the fact that many altcoin traders and investors use Bitcoin as a benchmark or a base currency for trading.

ADA market cap slightly below $9 billion. Chart: TradingView.com

Furthermore, Bitcoin’s price movements often reflect the overall market sentiment and investor confidence in the cryptocurrency industry. When Bitcoin faces significant challenges or negative news, it creates a sense of uncertainty and fear among market participants. As a result, investors may seek to reduce their exposure to riskier assets like altcoins, leading to a decline in their prices.

Waning Interest In Cardano Bullish Rally

According to data provided by Coinalyze on the four-hour timeframe, it has been observed that the Open Interest (OI) for ADA has been decreasing. The diminishing Open Interest suggests that market speculators are displaying a lack of enthusiasm toward a potential bullish rally for ADA.

ADA Open Interest down. Source: Coinalyze

Similarly, the Spot CVD (Cumulative Volume Delta) has been consistently on a downward trend, highlighting the prevailing bearish sentiment in the market. This further emphasizes the dominance of bearish market forces, indicating a negative outlook for ADA.

Featured image from CoinChapter

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.