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With Cardano (ADA) price crossing below key support levels, sellers are now targeting a retest of $0.70.
As the altcoin market faces a downturn with Bitcoin nearing $95k, top cryptocurrencies like Ethereum, Cardano, and XRP are falling below crucial support levels. Amid rising liquidations, ADA’s price trend marks its fifth consecutive bearish day.
The ADA trend signals significant downside risk with the price falling below $0.90. Could the volatile market drive Cardano’s price down to $0.70?
Cardano Price Analysis
On the 4-hour chart, Cardano’s price shows a bearish channel pattern. The ongoing correction within the falling channel has broken below a key support trendline.
This breakdown suggests a bearish continuation, with the price likely to extend the downtrend. Currently, Cardano’s market price is $0.839, and a bearish engulfing candle is forming on the 4-hour chart.
This engulfing candle breaks the support trendline and is on the verge of closing below it, which increases the likelihood of a drop to the $0.70 psychological support level.
The 200 EMA on the 4-hour chart also produced a bearish crossover. The 4-hour RSI has also entered the oversold territory, further indicating a sell signal for Cardano.
ADA Price Targets
On the daily chart, Cardano forms its fifth consecutive bearish candle. This undermines the previous accumulation phase above $0.90 and has resulted in a break below the 50-day EMA.
As the downtrend continues, Cardano’s price will likely test the 100 EMA at around $0.71. Therefore, the daily and 4-hour charts point to a downside risk of 13-15%.
However, if the 4-hour candle closes bullishly above the support trendline, a potential reversal could push the price back toward the 200 EMA at $0.976.