Cardano (ADA) is under intense pressure as selling activity increases across the broader cryptocurrency market.
While Bitcoin has contributed to the selloff, the recent movement of ETH linked to the infamous PlusToken scandal looks more dreadful. The potential $1.3 billion Ether selloff has introduced bearish sentiment in the market, with altcoins like ADA at the receiving end.
Cardano (ADA) has struggled to maintain its gains over the past month, dropping from $0.40 to $0.30. It hit $0.35 on October 1 and fluctuated between $0.34 and $0.35 without significant upward momentum. Currently, ADA is trading at $0.3348, reflecting a 0.98% decrease in the last 24 hours.
Investors are concerned about whether Cardano can withstand the looming impact of this large-scale ETH sale. However, despite the negative outlook, Cardano has shown resilience in the past, and its strong fundamentals may provide support. So, will ADA stop falling? Keep reading to find out.
Bearish Speculation Surrounds Cardano as PlusToken’s ETH Sale Triggers Fear in the Market
Cardano’s current price struggles are closely linked to Ethereum’s performance, as both assets share a strong correlation in the cryptocurrency market. The correlation largely stems from the role both play in decentralized finance (DeFi) and the broader cryptocurrency ecosystem.
If ETH loses value and disrupts the DeFi space, investor sentiment towards platforms like Cardano also weakens. This has placed ADA under pressure, mainly due to concerns surrounding the potential sale of Ethereum by the PlusToken scandal participants.
PlusToken, a major Ponzi scheme, accumulated around 830,000 ETH, much of which remained untouched since 2021. However, recent activity shows that approximately 7,000 ETH has been transferred to Binance and OKX.
A selloff of this magnitude, involving roughly $1.3 billion worth of ETH, can send shockwaves through the market. As such, it could potentially drag down ETH’s price.
If ETH’s value declines significantly, this could have a ripple effect on Cardano. In a worst-case scenario, should ETH fall to $1,950, ADA’s price could drop as much as 30.24%, reaching $0.23.
Conversely, ADA could see a rebound if the expected ETH sale does not occur. According to experts, it could gain up to 23.56% to retest $0.45.
Cardano (ADA) Nearly The Dynamic Support Level at $0.32 – Can The Support Hold Price?
Cardano (ADA) has indicated a gloomy outlook recently, forming bearish candles over the past four days. This shows that sellers dominate the market.
Moreover, the MACD indicator is below the signal line, reinforcing the bearish sentiment. The bold red histogram bars further emphasize this, showing that the downward momentum is strong and could persist in the short term.
ADA is also approaching the lower Bollinger Band, which currently acts as dynamic support around the $0.32 mark. This indicates that the token is nearing a critical point where the bearish trend might either intensify or reverse.
Should the $0.32 support level hold, a bullish rebound is possible. The lower Bollinger Band could act as a potential launch point, allowing buyers to increase prices.
If this support remains intact, ADA may see a recovery, reversing the bearish streak and moving back toward the mid-range of the Bollinger Band.
ADA’s Relative Strength Index Nearing the Oversold Zone – Could The Effect Take Place Soon?
ADA’s Relative Strength Index (RSI) is currently at 39, approaching the oversold zone (below 30). Considering the historical effect of oversold market conditions, ADA could be gearing up for a potential reversal as buyers enter at lower price levels.
Also, given that ADA is near the key support level, a rebound from $0.32 could be established, with potential targets above the $0.35 threshold.
While Cardano’s direction has not been established, early investors are turning to the new ground-breaking vote-to-earn meme project, Flockerz.
Flockerz (FLOCK) As Cardano’s Alternative – Here’s Why
Decentralized projects have long sought to empower their communities by allowing token holders to vote on crucial decisions. However, many token holders often lack the incentive to participate, leading to governance that a small group may sway.
Flockerz (FLOCK) aims to address this challenge through its innovative Vote-to-Earn (V2E) model, which rewards community members for voting participation. At the core of Flockerz is Flocktopia, an evolutionary decentralized autonomous organization (DAO) where every token holder can vote and earn rewards.
With FLOCK, token holders will have a voice in the project’s governance and earn rewards for exercising it. This unique approach encourages active participation and fosters a sense of community ownership.
FLOCK Presale Success
The FLOCK presale has generated significant interest, raising over $583,000 within two weeks. Currently priced at $0.0057469, the token is expected to appreciate as the presale progresses.
Moreover, staking FLOCK tokens can yield impressive four-digit percentage rewards, offering substantial returns for those who hold and participate actively in the ecosystem.
The project has allocated 20% of its total supply for the ICO, with 25% set aside for staking rewards, ensuring that community involvement is richly incentivized.
With its innovative model, Flockerz is poised to become a notable player in the meme coin landscape.
