- The Cardano price failed to recover on Wednesday, with the price currently down by almost 7%.
- Since the weekend, ADA has been quite bearish and has spent all of the current week in the red.
The Cardano price has registered a sharp drop during the ongoing session, as sellers continue to dominate the markets. ADA had slipped below the 200-day SMA on Sunday, falling to $1.83. Monday saw a further drop, with ADA dropping to $1.77 after falling by over 3%. Tuesday saw more of the same, with the price dropping by 1.54% and settling at $1.75. The current session (Wednesday) sees the price currently down by over 6% at $1.63.
Cardano Price Chart Indicates ADA Could Drop Below $1.60
The Cardano price had started the previous week in the red, slipping below the 20-day SMA after registering a marginal drop. Tuesday saw a much more significant drop as ADA fell by over 7%, settling just below the 200-day SMA at $1.87. After making a marginal recovery on Wednesday, ADA fell below the 200-day SMA on Thursday, dropping to $1.78 after registering a fall of almost 5%. However, Friday saw the price recover, as ADA pushed up by 4.28% and settled at $1.86.
Image: ADA/USD daily
After pushing to $1.86 on Friday, the Cardano price continued to push up on Saturday, moving above the 200-day SMA and settling at $1.92. However, Sunday saw ADA fall back into the red, falling by 4.55%, slipping back below the 200-day SMA and settling at $1.83. The current week started with the bearish sentiment dominating, as the price fell by over 3% on Monday. Tuesday saw a drop of 1.54%, with the price dropping to $1.75. Wednesday sees the price currently down by almost 7%, as sellers look to push ADA below $1.60.
We can see that the MACD is currently bearish, indicating that the price could drop further during the current session.
Looking at IntoTheBlock’s IOMAP for the Cardano price, we can see that ADA faces strong resistance at around $1.80. At this price level, over 209,000 addresses have sold more than 3 billion ADA.
The 4-hour Cardano price chart shows us that ADA was quite bearish on the 19th, as it dropped to $1.77. ADA made a strong recovery from this level, as it pushed past the 20-bar SMA, settling at $1.87. With the 20-bar SMA acting as support, ADA pushed up $1.92 but could not move past the 50-bar SMA and dropped to $1.86. ADA could not stay at this level as the price turned bearish, dropping below the 20-bar SMA and falling to $1.79. ADA continued to drop from this level, falling to $1.67 on the 24th, and then to its current level of $1.63.
We can see that the Parabolic SAR has just flipped to bearish, indicating that we could see the price drop further.
Image: ADA/USD 4-hour
Hoskinson Gives Thoughts On eToro’s ADA De-Listing For US Users
eToro recently announced it would be “limiting ADA and TRX” for users based in the US due to regulatory issues. These users would “no longer be able to open new positions in, or receive staking rewards for, Cardano (ADA) and TRON (TRX)” but would be “able to close existing positions.”
Users based in the US will not be able to open new $ADA or $TRX positions starting on 26 December 2021. They cannot enjoy staking rewards for $ADA and $TRX since staking support for these two assets will end on 31 December 2021. Final rewards (in USD) will be paid out on 15 January 2022.
US-based users based can maintain their existing $ADA and $TRX balances on the exchange. They can also close their positions (sell their $ADA or $TRX holdings for USD). However, sometime in Q1 2022, eToro will also limit the selling of such holdings. The platform is trying to make the eToro Money crypto wallet compatible with $ADA and $TRX.
This unexpected move by eToro forced Hoskinson to take to YouTube to clarify some confusion. He said that financial regulators had not contacted the Cardano Foundation or IOHK about $ADA. eToro’s move is the result of a lack of regulatory clarity around crypto-assets. Hoskinson noted that it is unfortunate that eToro felt it had to take this action.
He added that this would not affect ADA because it is one of the most liquid crypto-assets in the market, and eToro was not handling a huge amount of $ADA trading volume.
Cardano Price Is Expected To Reach These Levels
Looking at the Cardano price chart, we see that ADA has registered a significant fall during the current session. If the current sentiment persists, we could see ADA drop below $1.60.