By Nathan Ferguson
- Cardano’s price witnessed consolidation after encountering rejection at $9.843 – $0.916 breaker.
- A coiling up breakdown might catalyze a 12% plunge to $0.676.
- On-chain stats shows a bearish picture for the alternative coin.
Cardano price seems committed to downswings as the alternative coin teeters on its final dependable support cluster. With that, market players should closely watch this oversold token as accumulation chances remain high. Nevertheless, a near-term perspective highlights lower drops for ADA.
ADA To Re-establish Directional Trend
Cardano price switched the demand region between $0.843 and $0.916 to a break after sliding beneath it on 6 March. The newly created breaker means an obstacle, and the resulting recovery met rejection plus massive selling momentum, triggering a 7% downward move.
The resulting action printed a swing low near $0.766, welcoming ADA’s consolidative phase. As the altcoin started coiling up, it formed another equal low, showing sell-stop liquidity under it. That way, market players may expect ADA to sweep the lows before revealing a directional trend. Bears would likely dominate, pushing the dubbed ‘ETH-killer’ lows towards the closest support mark around $0.676.
That would translate to a 12% plunge, and Cardano’s price would likely stabilize here before contemplating its weaknesses and strengths.
The GIOM model by IntoTheBlock supports ADA’s downward move. The metric shows the dreadfulness of ADA’s downtrend over the previous six months. For now, Cardano’s price hovers near its last reliable support regions, where nearly 300,460 addresses bought roughly 8.95 billion tokens at a $0.20 average price. Surprisingly, the territory stretched towards $0.76, around the area projects from a technical viewpoint. That way, the altcoin will likely dip lows but witness intense bullish momentum as it nears the barrier at $0.76.
On the other side, large transfers worth over $100,000 shows whales aren’t interested in Cardano at its current price. These large transactions have plunged to 5,700 from around 7,000 within the previous three months, suggesting an 18.5% plunge.
While this looks somewhat risky for ADA price, a recovery past $0.916 will cancel the breaker plus the bearish narrative. That way, ADA might rally towards the weekly resistance at $1 and form a higher high in this area.