thecryptobasic.com
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.