The cryptocurrency market is once again on shaky ground, with Cardano (ADA) slipping below crucial support levels. As sellers tighten their grip, ADA faces a potential dive to $0.70.
Let’s dive into the details and see what’s driving this bearish momentum.
Cardano, like other top altcoins, is under pressure as Bitcoin’s market action near $95K sends shockwaves across the board. Ethereum, XRP, and ADA are all falling below significant support points.
For Cardano, it’s the fifth straight day of losses. Could we see ADA continue its slide down to the psychological $0.70 level?
Analysis
Cardano’s price action tells a clear story. On the 4-hour chart, ADA is locked in a bearish channel. This descending trendline was a crucial support area, but ADA’s recent movement has decisively broken through it.
Currently priced at $0.839, a bearish engulfing candle is forming, signaling a continuation of the downtrend. If this candle closes below the trendline, it would confirm the breakdown.
A drop to the $0.70 mark, a critical psychological level, becomes more probable in this scenario.
Additionally, technical indicators further emphasize the bearish outlook:
- 200 EMA Bearish Crossover: On the 4-hour chart, the 200 EMA has crossed into bearish territory, underlining the potential for continued downward momentum.
- Oversold RSI: The 4-hour Relative Strength Index (RSI) has entered oversold territory, a clear sell signal.
The confluence of these signals suggests that ADA could face steeper losses in the near term.
Targets
Looking at the daily chart, the outlook becomes even more concerning. Cardano has formed its fifth consecutive bearish candle, breaking below its 50-day EMA.
The previous accumulation phase above $0.90 has been dismantled, and the next major support lies around the 100 EMA near $0.71.
Here’s what to expect in terms of price targets:
- Immediate Downside: If bearish pressure persists, ADA is likely to test $0.71, which aligns with the 100 EMA.
- Potential Reversal: On the flip side, if ADA manages a bullish 4-hour close above the broken support trendline, there’s a chance for recovery. In this case, the price could bounce back toward the 200 EMA at $0.976.
This represents a critical inflection point for Cardano, with high stakes for both bulls and bears.
What’s Next?
Market volatility makes predicting precise movements tricky. However, Cardano is undeniably in a precarious position.
If the broader crypto market remains under pressure, ADA’s journey to $0.70 seems increasingly likely. At the same time, traders should watch for any bullish reversals that could reset the narrative.
With indicators flashing warning signs and the market sentiment leaning bearish, the coming days will be crucial for Cardano’s price action.
