May is not going well for altcoins so far and they are losing value against Bitcoin. This is worrying. If we’ve entered a period of further Bitcoin market dominance, the shallow liquidity in the markets could lead to further declines. Should altcoin investors expect further price declines? How many dollars will the popular altcoin be?
Cardano (ADA)
ADA Coin was the largest PoS smart contract platform before the Ethereum network switched to the PoS consensus mechanism last year. With major updates in the last two years, the ADA Coin price held strong until June 2022. But things changed, especially after the FTX crash, ADA Coin investors continued to reduce their holdings until the last month. This caused the price decline to continue.
ADA Coin broke out of an important pattern on the daily chart. This move indicates the risk of it falling below the critical support level. If this scenario materializes, the popular altcoin will confirm its downtrend and experience faster losses.
ADA Coin Comment
On April 20, the ADA token price broke below the rising parallel channel where it has been trading since March 10. This pattern is bearish and puts ADA Coin price inside two parallel resistance and support lines. For now, the upper line has been confirmed as resistance. Moreover, the daily Relative Strength Index (RSI) is also bearish below 50. This data confirms the dominance of sellers.
The price broke out of the channel while at the same time the RSI turned down confirming the bearish trend. Price action on the short-term six-hour timeframe shows that ADA price has broken below a descending resistance line since April 15.
ADA Coin price is currently trading at the $0.36 support level and is likely to lose this area. The possible scenario suggests that a bigger bearish move towards the $0.33 and $0.3 levels could happen soon.
Traders should prepare for more serious losses on closes below $0.36. However, closes above the resistance area suggest that the altcoin is likely to target $0.42 again.
