The Cardano price has turned sour. ADA has dropped in the past two straight days and is trading at the lowest level since September 7. It has fallen by more than 30% from its highest level this month, meaning that it is in a deep bear zone. Its total market capitalization has fallen from more than $90 billion to more than $69 billion.
Why is ADA falling?
While Cardano’s decline is part of the overall weakness in cryptocurrency prices. Indeed, other coins like Bitcoin, Ethereum, Hedera Hashgraph, and Ripple have all tumbled from their monthly highs.
Still, there is another reason why the token has fallen. This decline is partly because of the overall buy the rumour, sell the news situation. This is a situation where investors rush to buy an asset ahead of key news and then sell it when the news actually happens.
The Cardano price jumped sharply in the past few weeks, soaring to an all-time high of $3.09. This happened as investors waited for the Alonzo hard fork that introduced smart contracts. Since its launch, more than 200 developers have been building projects using the technology.
Still, there is a key catalyst that could push the ADA price higher this week. The Cardano Foundation and IOHK will hold their monthly meeting later this week. This event will involve developers and other participants in the industry.
As a result, there is a possibility that the event will lead to significant announcements that will move the coin. Indeed, historically, Cardano’s price has risen ahead of its events.
Cardano price forecast
The daily chart shows that the ADA price has been in a major downward trend recently. The coin has fallen by more than 30% from its all-time high. Along the way, it has declined below the 38.2% Fibonacci retracement level. It has also moved below the 25-day and 50-day moving averages (MA) and the important support at $2.50, which was the previous all-time high.
Therefore, the Cardano price will likely maintain a bearish trend as bears target the next key support at $1.80, which is along the 61.80% Fibonacci retracement level. This price is about 16% below the current level. On the flip side, a move above the key resistance at $2.50 will invalidate the bearish outlook.
