Cardano's 'Top 10' Status in Danger? Importance of ADA's $0.43 level

  • ADA increased by more than 4% in the last seven days.
  • Most metrics and indicators suggested that ADA might fail to test its support.

cardano [ADA] Investors should remain cautious as the token is at a critical level.

The recent price decline has pushed the price of the token down to the support level, and a fall below it could cause ADA to lose its place in the list of top 10 cryptos.

Cardano's dire situation

Like most cryptos, the weekly chart of ADA was in the red as the token's price fell by more than 4%. In the last 24 hours, Cardano price witnessed a decline of 1.6%.

At the time of writing, ADA was trading at $0.4383 with a market capitalization of over $15.6 billion, making it the 10th-largest crypto, according to CoinMarketCap.

However, ADA's top 10 spot may be at risk as the token's price is at a key support level.

AMBCrypto's analysis of the daily chart of ADA showed that the token was about to reach its support level of $0.4353.

ADAUSDT 2024 05 12 12 00 14

Source: TradingView

The token has already touched that support twice in the past few weeks. Every time, it manages to test it successfully and make a comeback.

If the same happens on this occasion, ADA may approach resistance near $0.51. However, if it fails to test this level, things could become dangerous.

Will ADA test its support?

To see if ADA will test its support and register a price surge, AMBCrypto analyzed data from Sentiment. We found that ADA's MVRV ratio fell last week.

Following the surge, whale activity around the token also declined. Cardano's NVT ratio increased, meaning it was overvalued, which signaled further price decline.

Additionally, its weighted sentiment declined, meaning that bearish sentiment around the token was dominant in the market.

These metrics suggested that a decline was more likely under ADA support.

Cardano's NVT ratio increased

Source: Sentiment

To better understand what to expect from the token, AMBCrypto examined its technical indicators. We observed that ADA price was resting under its 20-day exponential moving average (EMA).

Both its Chaikin Money Flow (CMF) and Relative Strength Index (RSI) recorded a decline.

The Money Flow Index (MFI) also started to decline, indicating that the coin is more likely to move into its support.

Nonetheless, MACD provided much-needed hope as it showed that bulls were still leading the market.

ADAUSDT 2024 05 12 15 10 15

Source: TradingView

Reading of cardano [ADA] price prediction 2023-24

AMBCrypto then took a look at data from Hyblock Capital to find out what could happen if ADA fails to test its support.

According to our analysis, if the bearish trend continues, Cardano price may drop to $0.41 first. At that level, ADA will have an opportunity to make a comeback.

Screenshot 2024 05 12 at 3.12.47%E2%80%AFPM

Source: Highblock Capital

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