Cardano (ADA) appears to become the next major altcoin to receive a heavy beating, as the price fell from $0.5 overnight. At the time of writing, ADA is changing hands at $0.4626, according to CoinMarketCap.
Read CRYPTONEWSLAND onThis is a shocking spectacle, as ADA price never touched this low since early 2021. That said, is it a good time to buy ADA or should people still wait?
As seen on the chart above, ADA price has had an astounding run from the end of 2020 until now. However, things look dismal for the time being. ADA has exhibited a Descending Triangle pattern in the 1-day chart, which signals a trend reversal.
More often than not, Descending Triangles indicate a bearish movement more than a bullish one. If this turns out true in the case of ADA, then the price may slip further until the $0.38 to $0.40 range. This is a very strong support zone that dates back to 2018.
Conversely, traders may consider buying ADA soon since the Relative Strength Index (RSI) is at 32. This means that ADA is definitely oversold.
Meanwhile, ADA supporters need not lose heart, as the recent support collapse is not an isolated event. As crypto trader and analyst Lark Davis said, most altcoins are in a crucible.
Disclaimer: The views and opinions in this article belong to the writer alone and they do not necessarily reflect the position of CryptoNewsLand (CNL). No information in this article, whether expressed or implied, should be taken as financial advice. Remember that investing in cryptocurrency poses significant risks to your asset. Hence, CNL strongly recommends all readers perform their own in-depth research before investing in cryptocurrency.
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