Amid the ongoing market crash, Cardano (ADA) has turned bearish and is poised to continue its price decline. Today, January 8, 2024, the sentiment across the cryptocurrency market has shifted, as the overall cryptocurrency market dropped by 5.5%.
Cardano (ADA) Technical Analysis and Upcoming Levels
This market crash has caused a breakdown of the four-day-long consolidation zone that ADA had been facing between the $1.047 and $1.11 levels. According to expert technical analysis, this breakout has turned ADA bearish, and there is a strong possibility it could initially decline by 8% to reach the support level of $0.95.
However, if this price decline continues and ADA fails to hold the support level of $0.75, there is also a possibility of another 20% price drop in the future, reaching the next support level at the $0.75 mark.
Currently, ADA is trading near $1.01 and has witnessed a price decline of over 10% in the past 24 hours, with an intraday high of $1.15. During the same period, trader and investor participation skyrocketed as the altcoin’s trading volume jumped by 57.7%.
Exchanges witness $36 Million of Outflow
This bearish price action and the overall market sentiment have created fear, but some long-term holders have been accumulating the token, as reported by the on-chain analytics firm Coinglass. Data from spot inflow/outflow revealed that, amid the market crash, exchanges have witnessed an outflow of over $36.16 million worth of ADA, the highest since December 18, 2024.
In the cryptocurrency landscape, “outflow” refers to the flow of assets from exchanges to wallets, which is considered a potential sign of accumulation. This metric further highlights potential buying pressure, an upside rally, and also hints at ideal buying opportunities.
It will be crucial for traders and investors to monitor key levels such as $0.75, as it could create a make-or-break situation.
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