Cardano Risks Crashing Below $1 as Bearish Momentum Grows: Can ADA Make a Comeback?
The recent Cardano decline threatens its $1 support level within a falling channel pattern. Will a breakdown send the ADA price crashing to $0.94?Despite a broader market recovery, Cardano is facing a constant bearish sentiment. This growing bearish pressure puts the $1 psychological mark at risk and signals the possibility of an extended correction.Will the slowdown in bullish momentum lead to a crash for Cardano? The local support trend line, however, suggests a different outcome.Cardano Price AnalysisOn the 4-hour chart, Cardano's price trend shows a lower-high formation despite the bullish trends in Bitcoin and other top altcoins. Due to bullish exhaustion, Cardano's price faces resistance at a trend line, which has kept its upward momentum in check. The ADA token is currently trading at $1.0625 as it pulls back from the overhead trend line. The bearish retracement has broken below the 38.20% Fibonacci level at $1.0826, and the negative cycle is moving closer to the 23.60% Fibonacci level at $1.0316.Two crucial support trend lines are forming a falling channel pattern on the 4-hour chart. Despite the bearish trend, the 4-hour RSI indicates an underlying bullish divergence. If Cardano manages to hold above the $1 psychological mark, it could increase the chances of a bullish reversal.Falling Social VolumeAs downside risks increase, social sentiment surrounding Cardano is turning bearish. Analyst Ali Martinez recently pointed out the declining social volumes for Cardano.With the total weighted sentiment dropping to -0.786, social volumes have fallen to 206. Martinez described the decline as just the kind of setup bullish contrarians dream of!
Text source: The Crypto Basic
