The post Why is Cardano’s price falling? Will it ever Secure Levels Beyond $0.5 in 2022? appeared first on Coinpedia Fintech News
The crypto space appears to be on a roller coaster ride, as assets display diverse trends on a daily basis. Cardano‘s price has also failed to rise above $0.5 despite the successful implementation of the Vasil Hard Fork earlier this week. Although the market participants now believe a significant upswing may be on the horizon, the technicals are contrasting.
The ADA price is currently trapped inside of a bearish descending triangle with an extended apex. Consequently, the volatility and volume have drastically decreased, indicating a significant effort to limit the price below $0.5. However, the intense bearish pressure may soon result in a breakout beyond the crucial resistance.
Since the asset is trading inside of a bearish falling wedge, the current pressure is anticipated to continue or it may even get worse. As a result, the target is now set at around $0.4, with a massive rebound expected if these levels are tested.
On the other hand, the on-chain analysis is currently not in favour of crypto because the platform is experiencing a significant drop in most of its parameters.
The active address count of the ADA price has slashed hard ever since the market collapsed in May and failed to gain levels above 100K
Cardano whales are constantly depleting ever since the ADA price marked its highs in September 2021
Moreover, the social dominance of the asset also has gone riches to rag, as the ADA’s share has dropped from over 9% to as low as 0.5% at the moment
Only a complete turnaround in the market conditions can restore the bullish momentum as extreme bearish conditions are dominating the price. Until then, the ADA price will continue to move towards the peak of the descending triangle, including multiple attempts to break through the upper resistance.