Is Cardano (ADA) price on the verge of a 15% drop?

Cardano’s price had an impressive start to March, but this momentum has slowed over the past few days. The ADA is now threatened by potential adjustments that could wipe out many of its recently stated gains.

But what if the third-generation cryptocurrency validates this bullish pattern starting in December?

Cardano price is approaching

The price of Cardano has risen more than 13% in the past week, trading at $0.72 at the time of writing. However, it is having difficulty maintaining this rally as it is below the local support level of $0.72.

This level should turn into support for ADA to rise further. However, since altcoins have already lost their bullish momentum, investors may choose to sell. The MVRV ratio measures an investor’s average profit or loss when acquiring an asset. Specifically, 30-day MVRV evaluates this metric for investors who acquired assets in the past month.

For Cardano, the 30-day MVRV is 10.8%, indicating that investors who purchased ADA last month are earning 10.8%. These investors are likely to sell their holdings to book profits, which could trigger a sell-off. The chart shows that ADA undergoes a major correction when MVRV reaches 10% to 20%. That is why this area is called a risk area.

The heavy sell-off sets off a chain reaction sending ADA to $0.68. This price is the upper limit of 5.23 billion ADA clusters worth $3.8 billion purchased between $0.59 and $0.68.

If these investors fear losses and choose to sell, the price of Cardano may also lose this support and fall to the next important support at $0.62, down 15%.

ADA Price Prediction: This One Move Could Stop the Fall

Over the past two months, Cardano has been observing the formation of a round bottom pattern. The rounding bottom pattern is a technical pattern that signals a potential bullish reversal in a downtrend.

It forms when the price of an asset reaches a low point and then gradually rises, forming a curve or round bottom. This pattern signifies a transition from selling pressure to buying pressure, and indicates a continuation or reversal of a bullish trend when the price breaks above the pattern’s resistance level.

For ADA, a breakout point is seen at $0.62, forming a neckline. The target amount per pattern height is $0.76. If Cardano rises another 6%, it will fulfill this pattern.

If this pattern is validated, ADA will find the boost it needs to break the $0.76 barrier, invalidate the bearish theory, and rebound towards $0.80.