Like other altcoins in the space, the price of Cardano has suffered a lot of losses over the past few months. This relentless sell-off has driven the price of ADA down to the point where it is now at levels not seen since the last bear market. Even now, Cardano remains at risk of further declines, as crypto analyst Lingrid explained in a recent analysis.
Why Cardano may crash further
The main problem facing the price of Cardano right now is that the bulls have failed to take back control from the bears several times. With each failure, the bear’s hold becomes stronger and the more likely the bear will continue.
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In an analysis, crypto analyst Lingrid revealed that Cardano remains above the consolidation support at $0.26. As a result, the cryptocurrency has now started to fall below its previous structure. At the same time, the price is also below the descending resistance, indicating considerable weakness.
Despite the recent recovery, the fact that the altcoin price finally turned to the downside proved that the bears are still in control of the market. The disadvantage of this is that the continuation of the possible decline is from here, especially since the price has also been rejected at $ 0.26 and the price may fall further. The only way this move will be invalidated is if the price of Cardano successfully recovers and rises above $0.27 again.
6 Red Moon
According to CryptoRank, by closing in the red in February, Cardano marked five consecutive months in the red, the third time this has happened in history. For the first time in 2021-2022, when the bear market began, it returned, and then again the same year, Cardano recorded five consecutive months of closing in the red.
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While the last time it ended with a strong increase in the sixth month, the price of Cardano has already fallen by more than 11% in March, which indicates that the red trend may continue. Now, in 2021-2022, it was the first time in history that a digital asset saw 6 monthly red candles, and what followed was interesting.
After the sixth red month in February 2022, the price of Cardano started to rise and finally ended the next month with an increase of 18%. However, after that, the bleeding continued and Cardano fell again. Now, if this trend repeats, then the cryptocurrency may see some relief after the sixth red month. However, this does not mean the end of recession, but is a precursor to more recession.
Featured image from Dall.E, chart from TradingView.com
