With Cardano (ADA) falling below the $1 mark, will the bears break the crucial 200 EMA at $0.968?
Amid the declining crypto market, Cardano has dropped 12.39% in the past 24 hours, slipping under the psychological $1 level. The market cap of Cardano is now down to $34.94 billion.
Despite maintaining its position among the top 10 cryptocurrencies, this short-term pullback increases the likelihood of a sustained bearish trend.
Cardano Price Analysis
On the 4-hour chart, the Cardano price trend indicates a failure to maintain the $1.117 resistance level after a breakout. This failure, combined with broader market declines, led to a significant correction, trapping many bullish traders.
Further price declines have broken the $1 psychological level, and Cardano is now retesting the 100-EMA at $0.991. The 100-EMA line acts as support, mitigating the bearish trend and guiding the price in a sideways direction.
Additionally, the 200-EMA provides lower price rejection, signaling strong underlying demand at lower levels. As Cardano shifts sideways after a sharp pullback, the 20-EMA shows a significant decline, raising the likelihood of a bearish crossover with the 50-EMA.
Furthermore, the 4-hour RSI has bounced below the halfway mark, hinting at a potential reversal during the consolidation phase.
Overall, technical indicators suggest a neutral stance despite the short-term downturn.
ADA Price Targets
Based on the current price action, Cardano is at a crossroads just below the $1 psychological level.
However, increased volatility in the crypto market adds uncertainty to ADA’s price trajectory. While the sharp drop below $1 may present a buying opportunity at a key psychological level, the broader market selloff suggests the pullback could continue.
In the event of a V-shaped recovery, immediate resistance for Cardano will likely be at the 20-EMA line at $1.044, followed by the $1.117 resistance level. Conversely, a bearish continuation could target support levels such as the 200-EMA at $0.968 and the $0.94 horizontal level.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
