Like other altcoins in this space, Cardano's price has suffered huge losses over the past few months. This relentless decline has pushed ADA's price so low that it currently stands at levels not seen since the last bear market. As crypto analyst Ringrid explained in a recent analysis, Cardano is still at risk of further decline.
Why Cardano could crash further
The big problem currently facing Cardano price is that the bulls have repeatedly failed to take back control from the bears. Each failure strengthens the bearish hold and increases the likelihood of bearish continuation.
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In an analysis, cryptocurrency analyst Ringrid revealed that Cardano remains below the consolidation support of $0.26. As a result, the cryptocurrency has started to fall below its previous structure. At the same time, the price is also below the descending resistance line, indicating considerable weakness.
Despite the recent recovery, the fact that altcoin prices eventually returned to decline proved that the bears still control the market. The downside to this is that the bearishness is likely to continue from here, especially since the price has been rejected even at $0.26, which could cause the price to crash further. The only way this move will be reversed is if Cardano price successfully recovers and rises above $0.27 again.
6 month red
According to CryptoRank data, February's red closing price marks Cardano's fifth consecutive month of red closing prices and the third time in history. The first time was back in 2021-2022 when the bear market started, and in that year Cardano recorded another five consecutive months of red closings.
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Although it last ended with a sixth month of strong gains, Cardano price has already fallen by more than 11% in March, suggesting that the red trend may continue. Now, if we go back to 2021-2022, it was the first time in history that a digital asset observed six monthly red candlesticks, and what happened after that was interesting.
After six consecutive months of losses in February 2022, Cardano price started to soar, eventually ending the following month with an 18% increase. However, the bleeding continued after that, and Cardano fell further. Now, if this trend repeats, the cryptocurrency could rebound in relief after six months in the red. However, this does not mean an end to the decline, but rather a harbinger of further decline.
Featured image from Dall.E, chart from TradingView.com
