Cardano Price Dips Below Key Support: Can SNEK Memecoin Offer a Lifeline?

Cardano Price Dips Below Key Support: Can SNEK Memecoin Offer a Lifeline?

On August 15, Cardano’s price breached a critical support level, confirming a bearish trend. Previously, three support levels were in place to buffer ADA against a decline, but bears have already claimed one. This downturn occurs as the Cardano community rallies to promote their unofficial chain meme, SNEK. The influence of memes on the success of major networks cannot be understated, as evidenced by Ethereum, Solana, and Ton. Meanwhile, whales have strategically placed buy limit orders at certain price points where they anticipate a potential ADA rebound.

Is SNEK Memecoin the Key to Cardano’s Revival?

Meme coins have proven instrumental in the success of blockchain networks, with Ton being a notable example. The TON coin saw a significant price surge following the launch and success of its primary meme coin, Notcoin (NOT). Cardano appears to be following a similar trajectory. In a remarkable show of support, the community quickly raised 2 million ADA (approximately $645,026) to feature SNEK on the Vegas Sphere for an entire week.

As the largest meme coin on the Cardano network, SNEK’s success could be pivotal in driving ADA price back toward its previous all-time highs. Simultaneously, the European real-world asset tokenization platform, Finest, has chosen to launch on Cardano’s mainnet. This platform will tokenize commodities, stocks, and bonds on the network, potentially drawing new investors to ADA.

ADA Price Outlook: The $0.27 Level in Focus

Cardano’s price continues to exhibit a long-term downward trend, with ADA consistently trading below the 21, 50, and 200 exponential moving averages (EMAs).

After breaking below the initial support level at $0.3275, ADA appears poised for a further decline towards the next major support around $0.2800. Notably, Cardano whales have set buy limit orders within this price range.

An in-depth analysis of the Liquidity Orderbook reveals that large investors have placed buy orders totaling over $1.77 million between the $0.27 and $0.28 levels. This suggests that Cardano may see a rebound around this zone.

Previously, ADA was trading within a rising channel, but a recent breakdown indicates that the bullish momentum has faltered. The moving average convergence divergence (MACD) indicator shows a bearish crossover near the zero line, signaling a potential increase in bearish momentum, which supports the prospect of further downside.

Overall, Cardano remains entrenched in a long-term bearish trend. However, the strong community backing of the SNEK meme coin may positively influence ADA’s price in the future. Meanwhile, the accumulation of significant buy orders around $0.27 suggests this could be a critical level for a potential price bounce.