Cardano (ADA) was not excluded from the massive flash crash that has just occurred across the market. What seemed like a good day for Bitcoin at the beginning of “Bitcoin Day” in El Salvador has now turned into a nightmarish market opening. The crash caused Bitcoin to drop $ 6,000 in just a few hours. While the general altcoin markets have seen dropouts of up to over 20% over the same period.
Since the altcoins closely follow Bitcoin, the price of the ADA shows similar movement patterns as BTC after the flash crash. The number 1 crypto coin fell to the middle of $ 40,000, taking the entire market with it.
Related reading | IOG denies rumors about Cardano Smart Contracts Platform
The Flash Crash surprised the market as the general mood is positive and the Fear & Greed Index is driving the market into “extreme greed”. There is currently no specific reason for this crash. Though massive liquidations totaling nearly $ 1 billion across the crypto market seem to be the culprit. The liquidated positions are predominantly long positions.
Crash puts Cardano (ADA) in a stranglehold
Cardano (ADA) is fighting alongside the other cryptocurrencies. The asset had long left the $ 2 price behind since mid-August, with indicators pointing to a path towards $ 5 after upgrades. But with the current flash crash, the digital asset lost over 18% of its value. This created a downtrend, with ADA hitting the low 2 levels for the first time in three weeks.
Related reading | New to Bitcoin? Learn to trade crypto with the NewsBTC Trading Course
Although Cardano (ADA) has seen an upward correction that has taken it towards the middle of $ 2, the price is still holding a difficult pace. Trend lines in the asset show a sideways zigzag pattern up and down. Numerous break-ins and recoveries in the last hour alone are shown. Starting early in the morning, ADA was $ 2.75. A bit shaky but held on to this price.
Flash crash drives ADA price to three-week low | Source: ADAUSD on TradingView.com
At this intersection, it’s too early to say how much recovery ADA will make in the hours after the flash crash. It has so far recovered about 6% of the value lost during the crash, with indicators pointing to a full recovery. At the current time of writing, Cardano (ADA) is still trading low at $ 2.45 with a 24-hour price change of 13.46%, according to Coinmarketcap.
Featured image from Currency.com, chart from TradingView.com