Cardano Slips Into Bearish Territory
Cardano (ADA) has found itself in a precarious position after not being able to maintain the essential $0.72 support level earlier this week. The altcoin is currently priced at approximately $0.68, reflecting a decline of about 20% over the past week due to a general downturn in the cryptocurrency market.
The downturn comes after several weeks of diminished trading activity and a resurgence of selling pressure on key assets, driven by global macroeconomic uncertainty and tightening liquidity conditions.
Decline From Ascending Wedge Sparks Selling Pressure
Recent technical analysis indicates that ADA has fallen below a rising wedge pattern that has developed on the four-hour chart since early September. These formations frequently indicate fatigue after prolonged uptrends and typically lead to periods of correction.
The significant breakdown intensified the downward trend, affirming the short-term dominance of sellers. Experts observe that this pattern breakdown signifies a pivotal moment in Cardano’s short-term trend dynamics.
Cardano Faces Risk of Deeper Drop Toward $0.63 and $0.51 Support Zones
Following the breach of $0.72, Cardano is now encountering increasing risk of a more significant drop towards $0.63, which is the next key support area. If this level is not defended, the asset may face further declines towards $0.51.
The thresholds indicate regions of significant liquidity concentration and will influence whether ADA stabilizes or continues its downward trend as the year concludes.
Recommended Article: Cardano Price Rebounds, Bulls Target Breakout Toward $1
Technical Indicators Mirror Market Instability
The Moving Average Convergence Divergence (MACD) indicator is currently indicating a bullish crossover, which often points to potential price stabilization. Nonetheless, the Awesome Oscillator has shifted to a negative position, suggesting restricted recovery prospects in the near future.
The conflicting momentum between indicators suggests a potential for sideways consolidation. ADA might fluctuate within a tight range until new catalysts emerge to significantly alter market sentiment.
Cardano Faces Ongoing Pressure While Trading Under Key Moving Average
On the daily chart, Cardano has been moving within a descending channel since mid-August, highlighting a consistent bearish trend. The latest decline beneath the lower boundary intensifies the challenges facing the token’s recovery attempts.
Furthermore, ADA continues to trade under its 20-day exponential moving average, currently positioned around $0.78. This technical failure indicates that sellers maintain their grip while short-term demand shows signs of weakening.
BBP Indicator Indicates Continued Bearish Dominance
The Bull Bear Power (BBP) indicator continues to stay in negative territory, emphasizing the strong presence of bearish forces throughout Cardano’s market structure. Experts view this as validation that the current correction could continue.
If momentum fails to pick up, ADA may face the possibility of revisiting its lower support levels at $0.63 and $0.51 before any meaningful recovery can take place.
Cardano Momentum Builds With Potential Move Toward $1.02 Recovery Zone
A brief recovery could be on the horizon if buying momentum surpasses the $0.72 resistance level. A continued buildup may propel ADA to $0.83, corresponding with the 0.618 Fibonacci retracement level.
In a positive market outlook, a prolonged recovery could drive Cardano back toward the $1.02 area. Nonetheless, this result hinges on enhancing sentiment and revitalizing network engagement throughout the ecosystem.
