As the altcoin market struggles amidst Bitcoin’s surge towards $95k, top cryptocurrencies like Ethereum, Cardano (ADA), and XRP are experiencing significant price declines. With rising liquidations and market uncertainty, Cardano’s price is facing a bearish trend that shows little signs of reversing. In fact, ADA is currently on its fifth consecutive bearish day, falling below crucial support levels. Could Cardano’s price dip to $0.70 in the coming days?
Cardano’s Bearish Outlook
Analyzing Cardano’s price action on the 4-hour chart reveals a clear bearish channel pattern. The recent breakdown below a critical support trendline suggests that the downtrend could extend further. At present, Cardano’s price stands at $0.839, and the formation of a bearish engulfing candle on the 4-hour chart highlights increased downside risk. This pattern suggests a potential drop to the psychological support level of $0.70, a key level that investors will likely be watching closely.
The bearish momentum is further confirmed by a significant bearish crossover on the 200 EMA (Exponential Moving Average) on the 4-hour chart. Additionally, the Relative Strength Index (RSI) has entered oversold territory, signaling a sell signal for Cardano.
ADA Price Targets and Downside Risk
Looking at the daily chart, Cardano has formed its fifth consecutive bearish candle, breaking below the 50-day EMA. This marks a reversal of the previous accumulation phase above $0.90, further undermining bullish sentiment. As the downtrend persists, ADA is likely to test the 100 EMA, which currently sits around $0.71. This indicates a downside risk of 13-15%, according to both the 4-hour and daily chart analysis.
However, all is not lost for Cardano. If the 4-hour candle manages to close above the broken trendline, a bullish reversal could be on the horizon. In this case, ADA might attempt to regain its footing and push towards the 200 EMA at $0.976.
The altcoin market’s current downturn is taking a toll on Cardano’s price. With key support levels breached and bearish technical indicators in play, ADA’s price faces significant downside risk. Investors should stay cautious as Cardano tests lower support levels, with $0.70 potentially on the horizon. However, any bullish reversal could provide an opportunity for a price recovery, keeping traders on high alert in these volatile market conditions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Bullish on Crypto: Why Render, Solana, and Cardano Are Set for Growth Before Trump’s Inauguration
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