- ADA dipped by 10% in 48 hours as it approached a key flag support.
- Whale activity has seen an 8.24% decline in the last 24 hours, adding to the bearish sentiment
Cardano’s [ADA] sharp 10% price drop at press time has carried the altcoin bulls by storm, sparking concerns among its market participants.
Technically, with the bearish momentum still accumulating, the altcoin could dip further to test its flag support level, potentially pushing the price below the $0.6 price level.
Adding to the downward pressure, ADA whale activity has also shrinked by 8.24% in the last 24 hours alone, signaling reduced confidence among large holders. Could this dip lead to further losses for ADA?
ADA bearish momentum is getting stronger
The recent price drop has left ADA in a weak position. As of this writing, Cardano was approaching a critical support level. Technical indicators flashed bearish signals, suggesting that it could dip further to test the flag support.
This is a pattern that typically indicates continuation of the current trend, which in this case just so happens to be bearish.
In the event that support fails, ADA could see its price fall below $0.6, a mark it has not hit for months.
Also, the altcoin whales’ activity has declined by over 8.24% as per the IntoTheBlock data, further intensifying ADA bearish position.
Big institutions- often considered as the market movers-have reduced the number of trades they execute, suggesting a lack of buying interest at current levels.
This is bound to increase selling pressure that could drive prices even lower.
Source: TradingView
Could the flag support show some light?
The flag’s support level is a key zone to watch. If ADA breaches this price level, then it would set off a snowball effect of sell orders, leading to dips.
Historically, these breaches have resulted in profound price drops, and ADA can’t be thought to be otherwise.
In the meantime, market participants are closely monitoring the $0.6 psychological level, as a break below this level could open the door for further losses.
However, it’s not all doom and gloom. If the key support does hold, ADA can consolidate and attempt to recover. But with the market sentiment and decline in whale activity, the odds seem to be against a quick recovery.
