Summary:
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Cardano price (ADA/USD) is down more than 10% over the last 24 hours.
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However, the decline could be ending with trading volume only up 2.21%.
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Cardano is a proof-of-stake blockchain platform advocating for a positive change in the world.
The Cardano price (ADA/USD) is down more than 10% on Friday amid increased fears from the new covid variant. ADA is the utility token of Cardano, a proof-of-stake blockchain platform that claims to empower “changemakers, innovators, and visionaries” so that they can bring positive change to the world.
The platform operates within an open-source ecosystem that seeks to redistribute power from unaccountable structures to the margins of individuals. As a result, ADA owners are able to participate in the operation of the network.
Is ADA poised for more declines?
From an investment perspective, Cardano seems to have plunged more than 50% after hitting a new all-time high in September. Therefore, it could be an opportunity to buy for those willing to overlook the short-term turbulence.
However, given the current downward pressure, it may not be the best time to add to your current ADA.
Source – TradingView
Technically, ADA seems to be trading within a descending channel formation in the intraday chart. As a result, it has plunged to the oversold conditions of the 14-day RSI, thus creating an opportunity for a rebound.
Therefore, investors could target potential technical rebounds at about $1.69, or higher at $1.89. On the other hand, if the crypto market continues to experience pressure amid the new covid variant, ADA could fall towards $1.41 or lower to $1.21.
Therefore, it may be best to monitor the general crypto market movement before betting on a rebound.