Cardano Breaks Below $0.50, Increasing Risk of 50% Correction

Cardano (ADA) has dipped below the $0.50 support level over the last few hours. If ADA were to close below this vital demand zone, there will be an increased risk of a 50% correction toward $0.25.

This possible pessimistic outcome derives from the formation of a bear pennant pattern on ADA’s 12-hour chart.

The only way for Cardano to prove the bearish thesis wrong is to claim the $0.55 support. This could prove to be difficult considering the low trading volumes in the crypto markets at the moment.

Cardano currently occupies the eighth position on CoinMarketCap’s list in terms of market cap, behind Binance USD (BUSD) in the seventh position and in front of Solana (SOL) in the ninth position.

The Ethereum-killer also made it onto CoinMarketCap’s trending list and occupies the 24^th spot.

At the moment, ADA is worth $0.5024 after a 2.93% drop in price over the last 24 hours and reaching a high of $0.5201 over the same time period. This price translated to 0.00001697 Bitcoin and 0.0002618 Ethereum.

When looking at the timeframes, ADA saw a 2.98% drop over the last seven days as well as a 43.40% drop over the last month.

With regards to market capitalization, ADA has over $16 billion. The cryptocurrency also saw a 24-hour trading volume of around $592 million. This number is consistent with the current low trading volume experienced in the crypto markets at the moment as it is down 14.64% from ADA’s numbers yesterday.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.