Cardano price crashes below $0.4, time to short ADA?

2022/10/12By: L, Laura

In brief

  • The $0.42-$0.4 range finally succumbed to selling pressure
  • Another fall was likely
  • Bitcoin also showed weakness, expect volatility


According to Coinglass data, nearly $3.5 million worth of positions liquidated on ADA pairs in the last 24 hours. The USDT Dominance measure surged the previous day, as investors fled to the stablecoin Tether in a time of heavy selling. Bitcoin has not breached $19k support, and it was uncertain whether another bounce from this level could arrive.


In other news, IOHK shared its weekly development report. However, other metrics were not as rosy for ADA. Even though development activity was high, the dropping TVL and the price action painted a bearish picture for Cardano price in the coming weeks.



Download App for Android Download App for iOS

Cardano price analysis: The support zone finally breaks and bears swarm in


Since July, the $0.4-$0.42 region (highlighted in cyan) has been an important support zone. The $0.44 level marked the lows of a range ADA has traded within since May. In the past two weeks, Cardano price slipped beneath the range lows as well as the support area.


This showed that bulls were exhausted. They likely did not have a lot of ammunition left to keep the bears at bay. The higher timeframe market structure was also firmly bearish. Therefore, traders can look for a revisit to the $0.4 area before entering short positions. To the south, the $0.33 was the next major support level, and short sellers can look to take profit at $0.37 and $0.33.


The Stochastic Relative Strength Index (RSI) on the 12-hour chart was on the verge of forming a bullish crossover. This development could precede a minor bounce, and a bearish crossover along with a bearish divergence on the RSI can be used to enter short positions around $0.4. The On-Balance Volume (OBV) was also at a multi-month support, while the RSI has been below neutral 50 since mid-September to show strong downward momentum.


Weighted sentiment was negative, which showed that social volume had been low and also that the messages were overall negative. This came as no surprise as the price was in a downtrend since mid-September. What has been surprising was that the number of active addresses had been in sharp decline in the past two weeks.


This number has dropped from 1.1 million to 470,000 in three weeks, which could leave a negative impression on long-term investors.


Sign up for BTCC now to build your own portfolio!


Read More:

LUNA Classic Burn: Will LUNC Burn Its Supply?

Terra Luna Classic Price Prediction 2025-2030: Will LUNC Hit $5?

Pi Network Mainnet: When Is Pi Coin Launching?

Is Pi Network Legit or Scam: Pi Coin Real or Fake?

Register now to begin your crypto journey

Download the BTCC app via App Store or Google Play

Follow us

Scan to download