Senior cryptocurrency analyst stated that the drop in Cardano’s (ADA) price on March 5th should not cause panic. According to Gambardello, the drop was necessary for ADA to reach a higher price in the long term. On the mentioned date, ADA’s price approached $0.80. However, on the same day, Bitcoin (BTC) reached its all-time high of $69,000.
Bitcoin’s Impact on ADA
Bitcoin couldn’t maintain its high level for long and later fell back to $61,000. But BTC wasn’t the only cryptocurrency affected. ADA also experienced a decline, losing 7.84% of its value in the last 24 hours, trading at $0.71. For the analyst, the drop is normal because the token had a similar experience when Bitcoin reached its all-time high in 2021.
Gambardello added that after this drop, ADA‘s price is expected to rise significantly. The analyst’s view follows a $3 price prediction he mentioned a few weeks ago. He also analyzed liquidation levels provided by HyblockCapital. According to the data, there was a liquidity cluster above $0.77, which could indicate that many positions were liquidated at that point. From this perspective, liquidation levels can show estimated price levels where the market could face a large-scale wipeout.
ADA Price Analysis
Sometimes the reason can be high leverage and extreme volatility. Other times, it could be due to insufficient margin balance to keep positions open. When this article was written, CCLD was rising negatively. This occurrence during a sharp decline in ADA’s price could indicate that the trend might shift upwards. However, the 4-hour ADA/USD chart revealed that bears had pushed the price down to $0.71.
Yet, Bollinger Bands (BB) might indicate high volatility. Therefore, ADA could experience high price volatility. If the cryptocurrency’s price recovers, ADA could rise to $0.80 in the short term. However, the token must first convert the $0.73 resistance. A successful breach could bring ADA close to $1. If the attempt fails, ADA’s price could fall, possibly dropping below $0.70 this time.
