Panic continues to sweep the cryptocurrency market, as investors go into a sell-off frenzy after the latest crypto-market crash. Cardano has not been left out in the current frenzy, losing 2.5 per cent in today’s trading session. Since the month started, Cardano has also lost 20 per cent of its value, extending its year-to-date price loss to 54 per cent.
The current Cardano price drop comes amidst a cryptocurrency market crash that has seen total market capitalization drop by more than six per cent. Data from CoinMarketCap also shows that, for most of the over 5,000 cryptocurrencies, the prices have dropped in the past 24 hours. The same trend has been consistent throughout 2022.
The past few days have also seen whales starting to exit their Cardano positions. The exit has partly been blamed for the recent price crash of the cryptocurrency, which has resulted in millions worth of Cardano being withdrawn. To explain the latest exits by the whales, many have speculated that these whales are exiting the crypto to invest in much newer projects.
Another reason that experts are attributing to the current market crash is the months-long global inflation. Recently, the US Federal Reserve announced measures to address inflation by raising rates. This has resulted in investors having to dig deeper to invest in cryptocurrency projects. The greed and fear index is also showing that investors are in extreme fear over their investment due to the current market conditions. Increased risk and fear in the markets have resulted in the latest sell-off of cryptocurrency assets.
Cardano Price Prediction
Today’s trading session has seen Cardano drop by more than 2.5 per cent. The drop is an extension of the recent market sell-off that has seen the prices drop by more than 50 per cent in 2022. However, the drop has more to do with the prevailing market factors than anything Cardano is doing.
Looking at the chart below, we can see both Williams Alligator and the RSI indicators showing a strong bearish market. We can also see the prices have been trading along a descending trend line for the past few months. I expect the current bearish trend to continue, with a likelihood of the prices trading below $0.5.
However, if the prices trend upwards and hit the $0.66 price level, then my trade analysis will be invalidated. It will also mean a likely bullish trend is in the offing.
Cardano Daily Chart
