Cardano (ADA) Breakdown to $0.44 is Possible as Market Turned into Bearish Phase
- Analysts noted that ADAs 3-day RSI hasnt reached the extreme oversold levels typically seen at major bottoms, hinting at possible further downside.
- The RSI reading suggests a true reversal may not yet be in play.
- ADA is approaching a red moving average that has historically acted as strong support, currently near the $0.48 mark.
- A potential retest around this moving average could be a key technical event to watch.
Cardano (ADA) is in the middle of a volatile period as it struggles with key technical levels. Following the failure to break a major resistance trend line, ADA has retraced, once more testing a crucial support area, one that trader sentiment suggests could set its path for the near and mid term.
Market analysts noted Cardano has been in a possible accumulation stage after its recent rejection at a falling trendline. Typically, these phases lead to major price movements, and bulls are eagerly anticipating signs of a reversal.
Still, bearish undertones continue to overshadow the outlook due to sentiment in the overall marketplace as well as Bitcoins oscillating near its own key support levels.
Currently, ADA has lost 3.67% in the last 24 hours, trading at $0.638, with a 24-hour trading volume of $726.69 million. The coin holds a market capitalization of $22.51 billion.
Source: Coinmarketcap
Cardano Targets $0.44 Support Before Bullish Breakout
According to a crypto market analyst tracking ADAs movement on the daily chart, the price continues to face stiff resistance at the 200-day Exponential Moving Average (EMA). If the rejection from this EMA level persists, the analyst warns that Cardano could descend toward the $0.50 to $0.44 range a zone that could form a double bottom pattern, typically indicative of a bullish reversal if confirmed.
If ADA gets pushed down to that zone and holds, we could be looking at a textbook double bottom, the analyst noted. That would set the stage for a rebound rally toward the $1.00 to $1.50 range, a major psychological and technical resistance area.
Source: X
Further technical commentary came from another observer, Seth, who pointed to ADAs performance on the 3-day Relative Strength Index (RSI). He noted that the RSI is not yet in the levels of extreme overselling more commonly seen at major bottoms, indicating more downside could be in the works before a genuine reversal occurs.
In addition, crypto commentator Seth described ADAs encounter with a highly-regarded red moving average line. Theres a potential retest in the works around this red MA, one which has long been a source of support. Its also positioned at around $0.48, a price to keep in mind, he said.
Source: X
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Text source: TronWeekly
