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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.