The cryptocurrency market was spooked by news that the US Federal Reserve would raise the interest rates. The Fed is holding a meeting on Wednesday to discuss a monetary policy that will aid the US economy as it records increased inflation rates. This has triggered more panic in the market as traders rush to sell.
Cardano (ADA/USD) has not been spared from the ongoing market bulls. Despite arousing buyer interest last week after flipping Solana (SOL/USD), the coin has registered notable dips, and it has now fallen below $1.
Cardano dips below $1
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Cardano has failed to maintain the crucial resistance support at $1.01, and at the time of writing, it was trading at $0.993. The dip comes after a 10.9% decline over the past 24 hours.
By going below 41, Cardano is now sitting at levels last recorded in March 2021. A sharp downtrend could be formed if support fails at $0.98 until the $0.69 levels are achieved. These levels were last recorded in February. The secondary support level stands at $0.75, which could be created if buyers that want to profit from the dip accumulate.
If ADA drops below $0.70, there is a high chance of buyers coming in because this could erase the yearly gains made by the altcoin. At this point, the downtrend could be exhausted, and buyers could come back into the market.
Cardano’s recovery depends on a market turnaround
As aforementioned, news of the US Federal Reserve meeting to discuss a new monetary policy has spooked the financial markets. However, the results of this meeting could go contrary to the fears of many and jerk the market towards a major recovery.
If Cardano rebounds as the broader market gains, the next target price will be $1.40. ADA was trading at these levels before the crypto market started its bearish rally. Hence, a broader market rebound is what ADA needs to reclaim its levels.
News revolving around Cardano’s blockchain is not exciting the market. The SundaeSwap DEX recently launched on the Cardano blockchain. The Cardano community eagerly awaited the launch, but it did not go as smooth as expected. Barely five minutes into launch, users started reporting transaction failure caused by network congestions.
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