The crypto markets experienced a major red wave this week, with Cardano and Cosmos taking the biggest hits. Cardano, one of the top ten cryptos, dropped to a multi-week low on March 2, while prices for Cosmos fell below key support levels. Global market capitalization has also been mostly lower throughout the week, with a 1.71% decline as of writing. As investors begin to assess the impact of this red wave and its effect on the crypto sector, it is important to understand the biggest movers in the market and their current status. In this article, we will explore the Crypto Market Red Wave, discuss the biggest movers during this period – Cardano and Cosmos – and look at their key price movements.
Cardano Plunges to Multi-Week Low as “Red Wave” Sweeps Crypto Markets
Cardano (ADA) dropped to a multi-week low on Thursday, plunging to an intraday low of $0.3501. The move was facilitated by a downward crossover between the 10-day and 25-day moving averages. This crossover suggested that the short-term trend had shifted downward and prices would follow. Prices thus collided with an important support point of $0.35000.
The relative strength index (RSI) also failed to climb above a ceiling of 45.00 to give signs of potential reversal and is currently tracking at 41.68. This indicates that buyers are not yet in control and the trend is likely to remain bearish for the time being. A move above the 45.00 resistance for the RSI could trigger another rally as ADA/USD looks for a sustainable recovery from its recent lows.
It appears that Cardano is feeling the heat of the broader ‘Red Wave’ seen across crypto markets this week. However, ADA/USD still remains well supported near $0.3500, which could prevent any sharp losses if the selloff continues in the near term. If the bulls can manage to keep prices stabilized around these levels, it is then possible that ADA may witness a recovery phase in the days ahead as bullish investors are likely to take advantage of any dips towards support points like $0.3500 or $0.3450.
Cosmos (ATOM) Plunges Below Support Levels
The prices of Cosmos (ATOM) retreated to a recent floor and fell below the long-term support point of $12.30 in the last couple of days. This means that the price is down by 10% in the last seven days, as the red market wave spread across the crypto sphere. Moreover, after breaching the mentioned support level, it dropped even further and made a low at $11.90 yesterday. That’s why, overall, Cosmos (ATOM) is suffering from bearish pressure.
The Relative Strength Index (RSI) for Cosmos (ATOM) also continued to fall towards a floor at the 40.00 level. This isn’t necessarily a bad thing; it means that prior to another uptrend or downtrend taking place, Cosmos (ATOM) might remain in an indecisive state for some time ahead. Therefore, in order to confirm any major move from here, we need to see some strong volume backing it up.
That said, if Cosmos (ATOM) is able to break above the $13 resistance level, it could potentially make its way to the $14 mark once again. In case of buyers sustaining their pressure, price strength could take Cosmos (ATOM) to $12.00 mark this week, however, that must be backed by high trading volume too. Consequently, traders should remain vigilant and look out for a bounce back before deciding any further course of action with respect to their investments in Cosmos (ATOM).
The crypto market is highly volatile and the red wave of the past few days shows just how quickly it can change. Cardano fell to a multi-week low as Cosmos (ATOM) saw a sharp drop below support levels. It is important to stay informed of the latest movements in the crypto space to ensure a successful investment strategy.