Cryptocurrency Plummet: Ethereum and Cardano Prices Drop by Over 10% – Is it a Good Time to Invest?

ng rate implies that shorts are paying longs and is a bearish market indicator. The recent crash in the crypto market has caused significant losses for traders, with Ethereum and Cardano suffering the most. Ethereum plummeted by 30% from its high of $3100 to $2150, resulting in over $615 million in liquidations. Cardano also experienced a sharp decline of 36% from $0.88 to $0.56, leading to a $36 million liquidation of trades. Despite some recovery, both coins are still trading at a significant discount compared to their recent highs.

Many investors may be tempted to buy the dip and capitalize on the lower prices of ETH and ADA. However, technical analysis suggests that the market conditions remain bearish, with a potential for further losses. The Open Interest (OI) weighted funding rate for both Ethereum and Cardano indicates a negative sentiment, with shorts outweighing longs. This bearish indicator suggests that the market may still have room for more downward movement before stabilizing.

As cryptocurrencies continue to experience heightened volatility, investors should exercise caution when considering whether to buy the dip or wait for more stability in the market. While the recent crash may present buying opportunities for some, it is essential to conduct thorough research and analysis before making any investment decisions. The crypto market remains unpredictable, and prices can fluctuate rapidly, so it is crucial to stay informed and aware of market trends before entering or exiting positions.

In conclusion, the recent double-digit losses in Ethereum and Cardano have prompted investors to consider buying the dip. However, technical indicators suggest that the market conditions are still bearish, with a potential for further declines. As the crypto market continues to evolve, investors should remain vigilant and informed to navigate the volatility and make sound investment choices.