Cardano (ADA) Under Threat: Downtrend Deepens, $0.80 in Sight?
Cardano (ADA) has initiated a significant downside correction from its recent high, signaling a potential deeper dive for the popular cryptocurrency. After peaking around the $1.020 mark, ADA's price is now exhibiting clear bearish trends, with concerns mounting about a further decline towards the $0.80 level.
Price Reversal and Resistance Challenges
The Cardano price recently experienced a notable decline, mirroring movements in larger cryptocurrencies like Bitcoin and Ethereum. Following a steady increase, ADA faced strong selling pressure above the $1.00 level, leading to a fresh downturn. The digital asset broke below crucial support zones at $0.950 and $0.920, subsequently trading beneath the $0.90 mark and its 100-hourly simple moving average. A critical bearish trend line has also formed on the hourly chart, establishing significant resistance near the $0.940 level.
Key Support Levels and Downside Potential
Should Cardano fail to overcome the $0.940 resistance, it faces the risk of extended losses. Immediate downside support is identified near $0.840. A more substantial support level lies around $0.8250, which coincides with the 76.4% Fibonacci retracement level of its recent upward move from $0.7650 to $1.020. A breach below this $0.8250 mark could pave the way for a test of the $0.80 region, with the next major support potentially emerging around $0.780 where bulls might re-enter the market.
Technical Indicators Signal Weakness
Technical indicators further reinforce the bearish sentiment. The Hourly MACD for ADA/USD is currently gaining momentum within the bearish zone, suggesting strong downward pressure. Similarly, the Hourly Relative Strength Index (RSI) for ADA/USD is positioned below the 50 level, indicating a lack of buying strength. Major support levels are noted at $0.8400 and $0.8250, while key resistance levels stand at $0.9200 and $0.9400. Investors should closely monitor these technical signals for any shifts in market sentiment.
