ADA’s price may yet recover to highs of $3.50 despite selling at lows of $2.58.
The price of Cardano (ADA), the third largest crypto-currency by market cap, has plunged 10% amid widespread selling pressure in the crypto-currency market.
ADA is currently trading around $2.59 and is vulnerable to further declines if selling pushes Bitcoin (BTC) toward $50,000 and Ethereum (ETH) toward $3,700. The top two crypto-currencies by market capitalization are down 2% and 6% respectively.
Across the market, major coins like XRP, Binance Coin, and Dogecoin recorded significant losses. The top ten are all in the red, with the exception of Solana (SOL), whose parabolic rally to a new all-time high has seen it remain around 24% higher over the past 24 hours.
The overall picture is bad, with potential declines below $50,000 for BTC and $3,700 for Ether likely to catalyze further losses in the market. On the other hand, an aggressive bullish bounce could protect the market from downward pressure and pave the way for further upside.
For Cardano (ADA), the decline follows what Santiment, the blockchain data tracker, has observed as an increase in discussion and confusion about the crypto-currency’s “ability” to be “integrated with smart contracts.” Notably, ADA’s price reached an all-time high of $3.09 after the smart contracts launched on testnet on September 2. However, the price of the coin has come under downward pressure as shown in the chart below.
Daily chart of ADA/USD. Source: TradingView
The technical outlook shows that there are two critical price levels that investors should keep an eye on. For the bulls, ADA/USD should retest key price levels above $2.73. If the price rises above $2.84, the next target would be $3, then $3.50.
Bears, on the other hand, may want to see ADA/USD tilt lower. The main price level to watch is $2.52, as an extension of the bearish trajectory could invite sellers to target $2.20.