Cardano (ADA) price looks bullish as it makes a U-turn on Monday following negative economic spikes from China that concern crypto traders.
Also, many major corporations are leaving Russia, including McDonald’s. All of these factors contribute to heightened risk sentiment, making it completely difficult for major cryptocurrencies to raise their price higher than usual.
This could also spell bad news for the ADA; risking a 32% correction. The negative sentiment has grown tremendously, which also indicates a downward trend in the coming quarters.
At the time of writing, the crypto is trading at $0.560514 on Coingecko on Wednesday, down 10% over the past seven days.
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ADA is headed for a tailspin below $0.40
Tail risks are increasing incessantly and do not seem to end, which could mean that ADA investors could be headed for the exit in the short term.
ADA price is heading for a nosedive just below the $0.47 price point or the lower end of the distribution zone, which could even go as low as $0.38.
On the bright side, with the developments taking place in the global economy and in the Cardano community, the first trading day of the week has shown promise of recovery. In fact, the price of ADA could possibly go up to $0.687 and go up to $0.915.
ADA Total Market Cap at $18.09 Billion on the Daily Chart | Source: TradingView.com
Even though Cardano suffered a massive drop over the past week, it managed to recover and hit $0.613 on May 16. Meanwhile, Cardano is currently recovering after its 4% gains.
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It went through a three-day bounce right there, as shown over the weekend. Whales activity was spotted by Cardano signaling a deviation in price direction.
Cardano TVL is at around $174.74 million. Now, the increase may seem totally insignificant, but it’s a winning leap as it has been steadily declining since its peak TVL of $434.74 million in Q1 or March 28.
The difference between cardano and the other alts. They pay to do things like this. The Cardano community simply does it out of love for the ecosystem and the philosophy. We have marketing. They are three million strong and they are growing. https://t.co/cRdnmGZPZz
—Charles Hoskinson (@IOHK_Charles) May 16, 2022
Cardano flag at the summit of Mount Everest
Charles Hoskinson, founder of Cardano, is proud to have reached the top of Mount Everest. He was ecstatic at the enthusiastic support from the community. His comment saying “we have marketing”, definitely speaks volumes about his optimism despite the downward trend that ADA has shown in the previous days.
The Cardano CEO prides himself on having a strong and dedicated community of 3 million members and growing. Cardano’s native tokens also rose to 4.7 million.
Furthermore, Cardano also managed to raise $20 million more in funding since Mary 13. Its TVL jumped from 18 million a few days ago to $137 million on May 16, that is, a 6% TVL change in a matter of 24 hours.
Coinbase featured image, chart from TradingView.com
This post Cardano (ADA) could drop back to $0.40
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