Cardano (ADA) drops below R7.30, might be a good time to buy
Cardano (ADA) is one of the most popular cryptocurrencies, with a devoted following that has been referred to as a cult. This definitely contributed to the huge growth that digital assets saw during the bull market of 2021. However, the digital asset has been unable to retain its value and has dropped by more than 87% since then. It has now dropped below another important technical level.
Cardano suffers R7.30 loss.
Cardano (ADA) has been able to keep its price over R7.30 for the longest time. This brought it closer to the key technical levels that would start a drop or a rise, depending on which way the market was going. In the end, the digital assets favoured the former.
The drop in ADA below R7.30 marks the start of a trend that market expert Peter Brandt predicted last week. Brandt noted that ADA had formed a classic declining triangle, implying that the digital asset would likely go below R4.56. The price of ADA is still a long way from the level that was predicted, but it is currently in line with the bearish predictions that have been making their way into the market over the past week.
If there is no reversal from here, it is probable that the first phase of the projection, which is the price going below $0.35, will be met swiftly. However, a price level of less than R4.56 remains difficult, but not impossible for the digital asset.
Is It Time to Buy ADA?
If the circumstances were different, the drop below R7.30 could turn out to be a once-in-a-lifetime opportunity. A number of factors make it difficult to recommend this as a 'buy' level for ADA. For example, the crypto market is predicted to enter the worst phase of the bear market between now and December, during which time cryptocurrencies will likely lose more value.
There has also been no strong market momentum to signal that a rebound is on the way. ADA's indications are currently all bearish, as it is trading far below its 50-day moving average. Cardano's price is more likely to fall as it follows the general market trend.
However, the community remains extremely optimistic about the digital asset. Price estimates from over 11,000 votes on Coinmarketcap suggest that investors predict Cardano's price to grow by 45% before the end of the month. If correct, this would place the cryptocurrency at a price of R10,48, indicating a bullish trend for the digital asset.
At the time of writing, ADA was trading at R7,12.
