Cardano price has been trading below May’s low of $0.3900 for the better part of the week. Investors appear to have looked past the US CPI numbers as the FTX situation continues to weigh on the industry.
Fundamentals
As is often the case, cryptocurrencies tend to move in the same direction. For instance, Bitcoin – the leading cryptocurrency by means of market capitalization – has dropped by over 65% year-to-date. During the same period, major altcoins like ETH, DOGE, and ADA have fallen by 66.55%, 52.98%, and 74.49% respectively.
Notably, the FTX crisis is the latest bearish catalyst for Cardano price. The sell-off, which has been felt across the crypto market, is founded on the fact that FTX had grown to be one of the major players in the sector.
Interestingly, Binance pullout of the expected acquisition deal, citing probable SEC investigation on FTX and the underlying compliance issues. The crisis has investors concerns over contagion in the crypto industry and the probable fall of other crypto exchanges.
Cardano price prediction
As shown on its daily chart, ADA/USD has been on a persistent bearish trend in recent months. Notably, the sell-off intensified earlier in the week as the market reacted to the FTX crisis and the subsequent decision by Binance to bail on its pledge to purchase the company.
Cardano price is entering the weekend trading below the 25 and 50-day exponential moving averages. Besides, since Tuesday, it has been trading below the crucial zone of 0.3900; which had been a steady support level since mid-May.
As at the time of writing, ADA was at 0.3507; down by 4.73%. With further losses, the bears will be eyeing the lower support at 0.3000. Even with the probable rebound, it will likely find resistance at 0.3891. In fact, Cardano price will need to rally past 0.4019 for this thesis to be invalid.
