The crypto market has been on a wild roller coaster, and the dramatic price swings have raised concerns among investors around the world.
Amid the turmoil, Cardano (ADA), one of the leading cryptocurrencies, saw its price drop significantly. However, recent market indicators point to a possible recovery.
It has been a tumultuous time for the entire cryptocurrency industry and Cardano (ADA) is no exception.
Following a devastating crypto market crash triggered by SEC lawsuits against major crypto platforms Binance and Coinbase, the price of Cardano plunged to a low of $0.23.
Said drop was part of a larger trend, with all cryptocurrencies waiting for more market indicators to determine their fate, whether to continue their recession or establish a recovery.
Despite the bleak situation, Cardano has shown remarkable resilience. The Blockchain platform has managed to recover from its bottom and increased its price from $0.23 to the current level of $0.26.
While this is a notable drop from its previous highs, it points to a possible recovery and is a testament to Cardano’s resilience in the face of the volatile crypto market.
Even in the midst of chaos, Cardano’s fundamentals remain unshakable. Its robust blockchain and bright future underpin the stability of ADA. Although the price of ADA has reached its lowest level in recent years, this does not fully reflect the inherent potential and performance of the Cardano Blockchain.
As such, many investors are keeping an eye on this cryptocurrency and seeing it as a potential opportunity in a declining market.
Cardano’s Bounce Potential
Cardano’s recent price action suggests that it still has significant potential for a rally. If the broader crypto market recovers even slightly, Cardano could regain its territory and move closer to a price of $0.30 as its first target. After this, a further rally could see $0.38 as a secondary target.
Possible Risks in the Cardano Forecast
Although there are prospects for recovery, the risks of further declines persist. If there is no recovery, Cardano prices could fall further to a range between $0.20 and $0.23. It is critical that investors are aware of this potential downside while also considering the upside potential.
Fall in the Price of ADA
Cardano price continues its slide for the fourth week in a row, amid rate hike fears, the SEC crackdown, and the US dollar rally.
On June 19, the price of ADA fell more than 3% to daily lows of $0.257, as traders continued to evaluate Cardano’s mention on the list of crypto assets that the United States Securities and Exchange Commission (SEC) deems ” unrecorded values”.
Furthermore, aggressive guidance from the Federal Reserve last week did not help the ADA price either, with another 50 basis point hike now likely in 2023. Higher rates tend to reduce investor appetite for risk assets such as Cardano.
Meanwhile, open interest in ADA-linked derivatives has fallen to around $111 million, the lowest since January 2021.
The intraday drop in the ADA price on June 19 coincided with the 0.15% rise in the US Dollar Index (DXY). These reverse moves could break its daily positive correlation coefficient in the coming days from the current high of 0.82.
By Audy Castaneda
