Cardano Price Drops by 18% as Upbit Rumors Swell
This upcoming weekend will not be a pleasant one for cryptocurrency traders. Given the shape the markets are in right now, more bearish pressure can be expected in the days to come. Every top currency is getting battered as we speak, with some coins taking a much bigger hit than others. The Cardano price, for example, is already down by 18.22% and the worst has yet to come.
CARDANO PRICE WOES AREN’T OVER YET
It seems rumors out of South Korea are triggering another massive cryptocurrency sell-off right now. Sources claim local exchange Upbit is under investigation for fictitious trading volume and quantities affecting multiple listings. As such, there is a growing fear of how this exchange may default, which would trigger another wave of negative sentiment toward cryptocurrencies. This also has an effect on the Cardano price, which is well underway to drop below $0.25 very soon.
While this debacle is taking place behind the scenes, it will be interesting to see how long it takes all cryptocurrency markets to effectively recover. More specifically, the Cardano price has lost 18.22% over the past few hours, although the final tally will probably end up near the 25% mark, if not more. This decline pushes the Cardano price down to $0.26, albeit that will probably not be the new stable support level.
This Cardano price decline is only further compounded by the ADA/BTC ratio declining by 12.4%. With the Bitcoin price dropping quite heavily over the past few hours, it is possible the ADA/BTC ratio will find some stability. Unfortunately, altcoins will face the brunt of this market onslaught first and foremost, as they suffer from both the Bitcoin price setback as well as losses in their respective ratio compared to Bitcoin.
With $300.19m in 24-hour trading volume, things are not looking all that bad for Cardano. Although it seems highly unlikely this volume will impact the Cardano price in a positive manner moving forward, there is no real reason to panic just yet. If the bears remain in control of all markets, this coming weekend will not be pleasant by any means, but most traders have gotten used to those trends by now.
The way things look right now, Upbit is still the largest exchange for Cardano. Given the rumors regarding this exchange, it is evident Cardano will face a major uphill battle for some time to come. This exchange generates almost 56% of all ADA trades right now, whereas Binance’s BTC and USDT pairs generated 21.6% of all trading activity. How this will evolve in the coming hours and days, remains to be determined at this time.
For the time being, the cryptocurrency markets will continue to face a lot of bearish pressure. As long as Bitcoin can’t find stable support and bounce back strongly, the altcoins will continue to suffer. For the Cardano price, it seems likely a drop below $0.25 is inevitable, and $0.20 might be reached at some point as well. This is not a great period for cryptocurrency users, but we have seen similar dips over the past few months. Sooner or later, the momentum will return to normal once again.