Amid the ongoing market crash, Cardano (ADA) has turned bearish and is poised to continue its price decline. Today, January 8, 2024, the sentiment in the cryptocurrency market has changed as the overall cryptocurrency market has fallen by 5.5%.
Cardano (ADA) Technical Analysis and Upcoming Levels
This market crash has led to a collapse of the four-day consolidation zone that ADA faced between the $1.047 and $1.11 levels. According to expert technical analysis, this breakout has turned the ADA bearish and there is a good chance that the price could initially fall by 8% to reach the $0.95 support level.
However, if this price drop continues and ADA fails to hold the $0.75 support level, there is also a possibility of another 20% price drop in the future, reaching the next support level at $0.75.
Currently trading near $1.01, ADA has witnessed a price drop of over 10% in the last 24 hours, hitting an intraday high of $1.15. During the same period, trader and investor participation skyrocketed as the altcoin’s trading volume increased by 57.7%.
Exchanges witness an outflow of $36 million
This bearish price action and general market sentiment have created fear, but some long-term holders have been rallying the token, as reported by the on-chain analytics company Mint glass. Spot inflows/outflows data shows that the exchanges witnessed an outflow of over $36.16 million in ADA during the market crash, the highest since December 18, 2024.
In the cryptocurrency landscape, “outflows” refer to the flow of assets from exchanges to wallets, which is considered a potential sign of accumulation. This metric further highlights the potential buying pressure and an upward rally, and also signals ideal buying opportunities.
It will be crucial for traders and investors to keep an eye on key levels such as USD 0.75 as this could create a make-or-break situation.