Geopolitical Risks and Technical Collapse… How Far Will Cardano Fall?

▲ Cardano (ADA)/AI generated image ©

The bearish trend of Cardano, which recorded a larger decline than the market average, is analyzed to be due to the simultaneous impact of geopolitical risks and technical collapse.

According to CoinMarketCap, a cryptocurrency market data aggregator, on April 13 (local time), Cardano (ADA) fell by 4.69% in the last 24 hours, dropping to around $0.238. While the overall market showed weakness, with Bitcoin falling by 2.61% during the same period, Cardano recorded a larger drop, showing a relatively sluggish performance.

The main cause of this decline is risk-off sentiment triggered by the breakdown of negotiations between the US and Iran and the issue of a Strait of Hormuz blockade. As the global financial market entered a risk-off phase, Cardano, showing high correlation with Bitcoin, also directly reflected the downward pressure.

Technically, bearish signals have also strengthened. Cardano broke below both its 7-day moving average of $0.25066 and its 30-day moving average of $0.25614, and the Relative Strength Index (RSI) dropped to 40.24, indicating a slowdown in momentum. At the same time, trading volume increased by 19.86% over 24 hours, reaching approximately $579.79 million, confirming a substantial expansion of selling pressure.

In the short term, the $0.2328 support level is a critical juncture. If this level is defended, a sideways trend within the $0.2328-$0.2467 range may continue, but if it breaks, additional downward pressure to $0.2237 is open. The current structure is assessed as a zone where bearish dominance is maintained below $0.2467.

A future variable is the outcome of the Cardano community's vote on the 14 million ADA treasury budget proposal. While this outcome could affect investor sentiment, Bitcoin's ability to defend the $70,000 level is also considered a key variable that will determine the direction of altcoins in general.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*