Cardano Price Risks Dip Below $0.50 As Altcoins See Red

Cardano price fell nearly 5% to trade at $0.52, putting bulls under pressure near the key level of $0.50 amid a broader altcoin market downturn.

Cardano, one of the top 10 cryptocurrencies by market cap at the time of writing, saw its native token fall sharply as altcoins mirrored Bitcoin’s crash to below $99,000 on Thursday. 

As the broader crypto market reacted negatively to Bitcoin (BTC) crashing below the critical $100,000 level, Cardano (ADA) followed suit. The altcoin dropped from intraday highs of $0.57 to $0.52, with bulls unable to defend the $0.56 and $0.54 demand reload zones.

Declines on the day see bears extend losses from highs of $0.60, and have buyers at risk of revisiting the psychologically important $0.50 mark. Notably, this level recently served as a buffer when cryptocurrencies also crashed on November 4. Previously, the mark served as a bounce-back zone for Cardano’s price in June and July.

ADA touched its year-to-date lows of $0.27 on October 10.

By dropping towards the half-dollar mark, the token risks pressure that could push it to this level. However, a rebound will steady the bulls and allow for a retest of recent highs.

The end of the U.S. government shutdown provided a brief upside boost for cryptocurrencies and stocks. Comments by SEC chair Paul Atkins about crypto token taxonomy and the rollout of spot XRP exchange-traded funds were also positive developments. 

However, U.S. stocks plunged sharply amid investor jitters around the impact of the longest shutdown in history. With the Federal Reserve’s path of interest rates, the odds of a rate cut in December fell, and stocks crashed. As the S&P 500 fell 1.5%, the Dow Jones Industrial Average shed over 600 points, and Bitcoin slumped to a low of $98,205.

Bitcoin holds near $99k at the time of writing, and the broader macro conditions suggest short-term weakness or consolidation.