Cardano has plummeted by 16% in the past 24 hours, with the ADA price dropping to $0.3005 on a day when the crypto market as a whole loses 15%.
ADA is now down by 28% in a week and by 14% in a month, with the altcoin clinging onto only a modest 3% gain in the past year.
Discouragingly, today’s big loss means that its current price has formed a ‘death cross’ in relation to its 30-period moving average.
Such a cross is usually a sign of further incoming losses, with negative economic data depressing sentiment throughout markets today.
Cardano Faces Death Cross as ADA Price Plummets: Analysis
If ADA’s chart offers any consolation, it’s that now is the perfect time to buy the dip.
Its indicators already suggest that the coin has entered oversold territory and should rebound soon.
For example, its relative strength index (yellow) fell below 20 this morning, which is a sign of excessive selling.
Likewise, its 50-period average (orange) has now dropped well below its 200-period average (green), while the coin’s current price is substantially below both.
As mentioned above, this means that ADA has seen a death cross, yet it’s arguable that the worst may already be over.
In purely technical terms, the market is massively undervaluing ADA right now, with the coin having been subdued for well over a week now.
This would ordinarily warrant a big rebound, yet the cryptocurrency market has suffered big losses today.
🚨🚨🚨: In the past 24 hours, 277,929 traders were liquidated, the total liquidations comes in at $1.06 billion
The largest single liquidation order happened on @Huobi – BTC-USD value $27.00M #Crypto #Bitcoin = $52,687.40 pic.twitter.com/eUhb0pklJv
— RichQuack (@RichQuack) August 5, 2024
These follow from losses suffered by traditional markets, which in turn have come from concerns over the state of the US and global economy.
We may therefore have to wait for some good news before the cryptocurrency market and ADA price pick up again.
It’s possible that the slowdown in the US jobs market, for instance, will make an interest rate cut likelier.
This would be good news for markets in general, including crypto and ADA.
As for ADA, Cardano’s fundamentals would suggest that an ADA price rally is long overdue.
Cardano has enjoyed steady development over recent months and years, with its latest count showing that over 1,300 projects are building on its network.
ICYMI: the weekly development update has all the info you need to stay abreast of the latest Cardano development news. From core tech to wallets & services, smart contracts, scaling & governance, it’s essential reading for the dev community.https://t.co/9wZWLt5UyN
— Input Output (@InputOutputHK) August 4, 2024
This figure is a signal of its potential future growth, and suggests how big Cardano could become once these projects begin launching.
Based on these fundamentals, it’s likely that a Fed rate cut may help the ADA price return to $0.45 by Q4.
Bigger Gains with New High-Potential Meme Coins
Because ADA has underwhelmed this year, many traders may prefer to look at newer tokens that have more potential to post bigger gains over a shorter timeframe.
This includes presale coins, which often benefit from generating lots of momentum and hype as they get ready to list.
One of the most exciting presale tokens right now is Shiba Shootout (SHIBASHOOT), a new Ethereum-based token that has raised over $870,000 in its sale.
Welcome to #Shiba Gulch, the heart of the Wild West crypto frontier! 🏜️
Join Shiba fans for challenges, memes, and thrilling Shootouts.
Join us at https://t.co/jCeu7XN9gp pic.twitter.com/RLhyuJsgzY
— shibashootout (@shibashootout) June 8, 2024
Shiba Shootout is interesting because it combines Shiba Inu memes with Wild West motifs.
In particular, it’s building an online community in which members will participate in mini-games and contests, earning themselves rewards in the process.
Such games will all be Wild West-themed and will include poker tournaments, lotteries, and virtual treasure hunts.
By hosting these events, Shiba Shootout is aiming to grow a healthy community that will support SHIBASHOOT’s price over the longer term.
As a token, SHIBASHOOT will have a max supply of 2.2 billion SHIBASHOOT, with its presale receiving 35% of this supply.
Another 20% of this will go to staking, which will incentivize long-term holding.
Newcomers can join the coin’s presale by going to the official Shiba Shootout website, where 1 SHIBASHOOT token costs $0.0198.
This price will rise by $0.0001 with every new stage of the sale, so traders should move before it gets higher.
And they should certainly act before the token lists, because Shiba Shootout’s growing popularity would suggest that it could rally big once it appears on trading platforms.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.