Cardano Bulls Botch Support, ADA Drops 11%

Cardano Bulls have again botched support despite riding the Whales’ wave.

Bull doesn't know why the price is down.
Created by Kornelija Poderskytė from DailyCoin
  • Cardano Bulls struggled to hold support at $0.3, leading to ADA sliding into the Bears’ territory. 
  • The Bears look to push ADA through a strong Whale demand zone. 
  • Investors have their hopes up for a rally, but will it happen? 

Cardano’s Bulls have again dropped the soap despite riding the Whales’ wave. Since rallying 11% in a single day to triumphantly reclaim $0.3 from the Bears’ claws, the Bulls have struggled to maintain momentum as they slowly spiral toward their doom. 

ADA holders now anxiously monitor each candle, hoping for another bounce-back, wondering: Will the Whales throw in a life jacket, or will the Bears plunge ADA into the depths? 

Cardano Bulls’ Wavering Strength

After successfully reclaiming the $0.3 mark on August 9 with help from ADA Whales, Cardano Bulls struggled to flip the level into support, ultimately conceding control to the Bears. ADA’s price has since slowly bled into the Bears’ territory, who now look to push it toward $0.25. 

At press time, Cardano’s ADA exchanged hands at $0.29, marking an 11% drop since the Bulls fumbled support. While the asset’s daily trading volume exceeded $155 million, it fell short of the usual range of around $250 million by 38%. 

Cardano ADA price chart.
Cardano price chart. Source: CoinMarketCap.

With the Bears trying to drive the price down, it’s worth noting that their previous efforts inadvertently guided ADA to the Whales’ demand zone between $0.28 and $0.29. This later triggered a substantial surge in Whale accumulation to levels last seen in September 2022, culminating in a miraculous 11% price rally. 

Investors eagerly await another price surge as Cardano hovers within the Whales’ accumulation zone. However, given the diminishing trading volume and overall bearish sentiment, it’s unlikely large players will come to the rescue this time. 

According to IntotheBlock data, investor sentiment remained bearish across the chain, exchange, and derivative markets. The negative long-to-short ratio added to the bearish sentiment, signaling investors are looking to exit, per CoinGlass

With the Bulls locked in the bullpen, the Bears are likely in control for the rest of the year unless the former fights back. 

Where Is ADA Heading Next? 

Over the following weeks, the Bulls are tasked with reclaiming the $0.30 level and flipping it into strong support. Should they fail, ADA will range at current market price levels or even lower for the rest of the year. Cardano’s price chart has been forming a broad bearish channel, consistently recording multiple lower highs. 

Cardano ADA price chart.
Source: TradingView

A breakout at $0.29, with assistance from the Whales, could lead to Cardano reclaiming its coveted critical support level. However, ADA ranging at current price levels for the rest of the quarter is more likely than a breakout. 

On the Flipside

  • Market dynamics can be unpredictable, so it is essential to consider alternative perspectives and opinions when evaluating the potential future performance of Cardano.
  • Cardano’s $0.3 support level loss led to traders losing over $900,000 across long positions over the past week. 
  • Santiment revealed a 52% decline in Daily Active Addresses when Cardano (ADA) slipped below $0.3 on August 3, leaving the network with 36,000 active wallets.

Why This Matters

Cardano has been ranging under $0.3 for over two months now. Reclaiming the $0.3 is pivotal for ADA in regaining investor confidence. However, should the asset struggle in breaking out, it could consolidate for the rest of the year and lead to more holders exiting. 

More on Cardano: 

Large Cardano Holding Reported by Publicly Traded American Bank

More from Cardano’s ecosystem: 

How Wanchain Connects Cardano to Every Major Network

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.