In the last 24 hours, about 1.7 billion Cardano (ADA) have changed hands in the crypto market. The increasing macro risk in the broader financial space has shifted market sentiment as ADA bulls reacted to these developments.
Rising selling pressure weighs on Cardano price
Cardano has dropped from a daily peak of $0.2682 to a low of $0.2559 in the last 24 hours. As of this writing, Cardano is changing hands at $0.2590, which represents a 3.14% decline within the time frame. This has negatively impacted the market outlook as bulls exercise caution.
The crypto-wide slip and escalating global tensions from the Middle East conflict have caused the risk appetite of bulls to drop. Cardano, just like other altcoins, is experiencing capital rotation away from it.
On-chain data reveals that there is increased selling pressure in the Cardano market. Notably, approximately 230 million ADA have been offloaded within the last seven days. The value of this volume has been estimated at over $63 million, a development that added to the selling pressure.
The current development might witness a reversal once ADA is oversold. Currently, the Relative Strength Index of Cardano is at 35 on the two-week chart. This shows that momentum is weakening, but the asset has not slipped into the oversold territory.
Market participants are watching the price movement keenly. If ADA is able to sustain a close above the $0.25 level amid high volume, a bullish rebound is possible.
However, a slip below this support could trigger bearish momentum and further slips toward $0.23. Cardano’s price is at a critical juncture, and its next step might be determined by Bitcoin’s ability to stabilize above $68,000.
ADA adoption developments could support recovery
Cardano’s adoption could also support the asset’s rebound move. Recently, the Cardano Foundation reached an agreement with a fintech firm in Switzerland, DFX. As per the report, Cardano has been integrated into the DFX platform for use as payment.
The move will see ADA accepted as payment for goods in the 137 SPAR Supermarkets in Switzerland. It is expected to benefit users as it will lead to faster settlement and lower costs.
Interestingly, Cardano’s volume had spiked by 23% earlier at the beginning of March as its price retested the $0.30 mark. ADA recorded increased liquidity to support its move at the time. This suggests that for a repeat of its upward movement, volume needs to soar.
Source: https://u.today/17-billion-cardano-in-24-hours-ada-bulls-react-to-market-sentiment-shift
