Cardano (ADA) Price Breaks Under $0.60 and Warns of Wedge Breakdown to Shatter $0.50

With rising bearish sentiments in the crypto market, altcoins are in a free fall. Cardano, the 9th biggest crypto, has dropped nearly 26% in the past 7 days.

Currently trading under the $0.60 mark, it is down by 11% in 24 hours. With its market cap down to $20 billion, is Cardano bound to witness a steeper correction? Let’s find out.

Cardano Fall Inside Bearish Wedge Hits Support Trendline

On the daily chart, Cardano’s price trend continues to decline within a falling wedge pattern. After an intraday dip of 8.06%, Cardano has formed its third consecutive bearish candle.

Cardano Price Chart

The decline is now testing the local support trendline after breaching another 50% Fibonacci level at $0.6272. Currently, Cardano trades at $0.5918, with a 24-hour low of $0.5810.

With the downward trend continuing within the falling wedge, the Supertrend indicator shows a highly bearish outlook. However, the Stochastic Momentum Index hints at a potential crossover in the oversold region, suggesting a possible bullish reversal in Cardano’s price trend.

Whales Buying ADA Price Dip?

Ali Martinez, a crypto analyst, highlighted the increased demand for Cardano during the market fall. In a post on X, the analyst stated that whales have purchased more than 130 million ADA tokens over the past 72 hours.

This uptick is reflected in the whale holdings of 10 million to 100 million ADA tokens, which have increased from 12.38 billion ADA to 12.51 billion ADA.

Will Cardano Crash Under $0.50?

According to Fibonacci levels, a potential breakdown of the falling wedge pattern may test the 23.68% Fibonacci level at $0.4396. This warns of Cardano’s potential to drop under the $0.50 psychological support.

On the bullish side, a potential reversal within the falling wedge could likely test the 61.8% Fibonacci level at $0.7351.