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ADA/USD Plunges to $0.4804 Amid Market Volatility

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Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
By Arslan Ali Butt
author
Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
on January 08, 2024 | 2 min
Updated on Jan 08, 2024
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  • ADA faces a significant drop to $0.4804, with its market cap holding strong at $16.99 billion.
  • ADA’s pivot point at $0.4435 and resistance up to $0.6907 contrast with supports at $0.3895 and $0.2939, shaping its market trajectory.
  • Oversold conditions indicated by RSI and bearish momentum from MACD, yet the potential for a bullish reversal exists above the $0.4780 level, highlighted by Fibonacci retracement and candlestick patterns.

Cardano (ADA/USD), currently ranked as the eighth-largest cryptocurrency by market capitalization, has experienced a notable decline in the past 24 hours. As of January 8, the live price of ADA is $0.480403, a significant 8.62% decrease within a day. This movement reflects the volatile nature of the cryptocurrency market, where Cardano maintains a market capitalization of approximately $16.99 billion, with a 24-hour trading volume of $534.76 million. The circulating supply of ADA coins stands at 35.37 billion, approaching its maximum supply of 45 billion.

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ADA/USD Price Chart
ADA/USD Price Chart – Source: Tradingview

Cardano (ADA) Price Prediction: Technical Outlook

The 4-hour chart provides crucial insights into Cardano’s current market dynamics. The pivot point is identified at $0.4435, a key level for traders monitoring ADA’s price movements. Resistance levels are mapped out at $0.5411, $0.5931, and $0.6907. These levels are significant, as they could potentially halt or reverse the downward trend. On the support side, ADA finds immediate support at $0.3895, followed by lower supports at $0.2939 and $0.1963. These support levels are crucial for determining ADA’s ability to sustain its current market position.

 

Technical indicators reveal a deeper story. The Relative Strength Index (RSI) stands at 26, indicating an oversold condition. This could suggest a potential reversal or stabilization in ADA’s price. The Moving Average Convergence Divergence (MACD) shows a figure of -0.0027, with the MACD line at -0.0212, indicating a bearish momentum. However, the situation is nuanced, as ADA’s price currently trails below the 50-Day Exponential Moving Average (EMA) of $0.55250, further reinforcing the bearish outlook.

 

A key observation in ADA’s chart is the completion of a 61.8% Fibonacci retracement at 0.4780. Additionally, the closing of a hammer candlestick pattern on the daily chart signals a weakening downward bias. This pattern is often considered a bullish reversal indicator, suggesting that the current bearish trend might be losing momentum.

 

As we look ahead, the overall trend for Cardano appears to be delicately balanced. A bullish reversal is possible above the $0.4780 mark, where ADA has shown some resilience. The coming days will be crucial for Cardano, as it tests these key resistance and support levels, which will likely define its short-term market direction. The cryptocurrency market’s inherent volatility demands that investors and traders remain vigilant and responsive to these rapid changes.

 

In summary, while the current scenario for ADA/USD is bearish, the technical indicators and chart patterns hint at a potential reversal. This dynamic market scenario requires close monitoring of ADA’s price action, especially around the identified support and resistance levels.

Stay tuned for more updates!

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About Arslan Ali Butt
Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
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