Cardano dropped below its 50DMA and $0.05 on Thursday and might test the $0.46 mark before rebounding to weekly highs.
- Thursday’s broad market pullback saw Cardano falling from Wednesday’s peak near $0.55.
- ADA remained primed for more declines as it declined beneath the 50DMA of $0.4950.
- Meanwhile, retesting $0.46 support could attract bulls and catalyze recoveries to $0.55.
Cardano Drops 10%, Sliding Beneath 50DMA
Cardano’s ADA has dropped beneath $0.50 again after rejecting a test of a crucial level of support-switched-resistance early in June near $0.55. The latest drop saw the token sliding briefly beneath its 50-dayMA at $0.4950, though it has steadied beyond previous session lows around $0.47.
Cardano has dropped over 10% from its Wednesday highs, succumbing to broad pressure witnessed in the crypto world. Some experts believe profit-booking contributed to the declines. Others trust updates about Tesla selling its BTC holdings in the second quarter, plus the current crypto winter dented sentiment.
Nevertheless, ADA still hovers 20% beyond its multi-week lows. Meanwhile, with broad sentiment still appearing slightly upbeat and U.S equity indices contemplating further highs, Cardano bulls will hope that the token could retest its latest highs before closing the week.
Ahead, investors will watch ECB’s financial decision today to see if the bank hikes by 25bp or 50bp and possible impacts on crypto and the FX dashboard.
ADA Price Forecast – A Dip to $0.46 Before Rebound?
Cardano might experience short-term losses after the digital token slipped beneath the 50DMA and the latest run-up momentum since overcoming the downtrend fade.
Meanwhile, retesting the $0.46 mark could attract buyers to trigger bouncebacks beyond $0.50 and target weekly peaks. Remember, $0.46 has capped uptrends since mid-June. A rebound will see the altcoin securing support at the 21-day Moving Average.
As highlighted, the crypto market retreated after the latest upward actions. For instance, Bitcoin has retraced to trade at $22,913.32. Also, the overall crypto market capitalization declined by 2.53% over the last day to $1.03 trillion. Such developments support Cardano’s slide.
Stay around for the latest developments in the cryptocurrency markets.
