Cardano at $0.72 signals a potential pullback to a crucial support level. Will buyers fail to extend the recovery beyond the 200-day EMA?With an intraday pullback of 2.09%, Cardano is trading at $0.72. Struggling to surpass the 200-day EMA, the ADA price trend hints at a pullback, forming an evening star pattern.Will this pullback lead to a retest of the crucial $0.62 support? Let's find out.Cardano Analysis Suggests Potential $0.62 RetestIn the daily chart, ADAs price trend shows an early bullish bounce back before reaching the 50% Fibonacci level at $0.6272. With a tweezer bottom formation, Cardano ended a five-day bearish streak with a 7.93% surge on Tuesday.Cardano Price ChartThis led to a 1.66% bullish continuation, marking the second consecutive green candle. However, the failure to close above the 61.80% Fibonacci level at $0.7351 signals a bearish reversal.With the intraday bearish candle, Cardano is signaling a potential evening star pattern as it retests the broken 200-day EMA. Furthermore, due to the increased volatility and bearish pressure, the 50-day and 100-day EMA lines are on the verge of crossing negatively.Meanwhile, the MACD and signal lines remain negatively aligned below the zero line, with bearish histograms resurfacing. As a result, the technical indicators suggest a bearish outlook for Cardano.Bearish Sentiments On The Rise?As Cardano struggles at a crucial crossroads, trader participation in Cardano futures contracts has seen a significant increase. The open interest for Cardano has risen by 3.69% to reach $759.97 million. Cardano DerivativesCardano DerivativesHowever, the long-to-short ratio remains slightly bearish at 0.9778. Additionally, the funding rate stands at -0.0064%.The slightly bearish long-to-short ratio and funding rate signals a gradual rise in bearish sentiment surrounding Cardano.Despite the short-term rise in bearish sentiment, Polymarket users are anticipating a major approval for Cardano. According to recent data, users believe there is a 70% chance of Cardanos ETF being approved in 2025.Polymarket PolymarketWill Cardano Cross The 200-day EMA?Based on Fibonacci levels, the short-term pullback points to the formation of an evening star pattern. This could likely retest the 50% Fibonacci level at $0.6272. However, as the broader market stabilizes, altcoins will likely bounce back.In the event of a bullish extension, the Fibonacci levels suggest a price target of $0.9216 at the 78.60% level. Meanwhile, the dynamic average lines signal an intermediate price target near the 50-day EMA at $0.81.
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