Cardano Could Drop to $0.18 After Three Consecutive Bearish Closes

Cardano faces further downside risks after recording three consecutive bearish daily closes, with its price hovering just above the critical $0.2000 support level.

Popular trader and analyst Zen Trades has warned that Cardano could extend its decline after breaking below a rising trendline and key moving averages, weakening its technical structure.

According to his chart, $ADA trades around $0.2034, below its 50-day EMA at $0.2240 and its 200-day EMA at $0.2434. Additionally, Cardano has lost the rising trendline that previously supported its recovery, with the breakdown occurring near $0.2398.

Consequently, the bearish outlook could persist unless $ADA reclaims these technical levels and establishes a stronger recovery.

$ADA Faces $0.1894 Support as Bearish Momentum Builds

Zen Trades identifies $0.2000 as the immediate support level to watch. A decisive break below this psychological threshold could expose $ADA to the next downside target at $0.1894, which the chart marks as horizontal support.

If selling pressure intensifies, $ADA could extend its decline toward $0.1533, another support level identified in the analysis. Notably, this bearish target has featured in several recent Cardano forecasts.

For instance, Kevin Mercer recently highlighted a zigzag pattern on $ADA’s chart that could send the token toward $0.15 before the end of the year. This projection reinforces the downside scenario if Cardano fails to defend its current support levels, although the outcome remains uncertain.

Cardano Technical Indicators Support Bearish Outlook

Meanwhile, technical indicators also favor the bearish outlook. The RSI stands near 35, signaling weakening momentum and bringing $ADA closer to oversold territory. Similarly, the MACD remains below zero, indicating that bearish momentum continues to dominate.

However, the RSI has not reached the conventional oversold threshold of 30. Therefore, its current reading does not independently confirm an imminent rebound, leaving $ADA vulnerable to further losses if selling pressure persists.

Key Resistance Levels Cardano Must Overcome

Despite the bearish outlook, Cardano could attempt a recovery if buyers regain control and push the price above its immediate resistance at $0.2240, where the 50-day EMA currently sits.

A sustained move above this level could open the way toward the broken rising trendline near $0.2398. However, $ADA would still face another significant hurdle at the 200-day EMA of $0.2434. Reclaiming these levels would strengthen the recovery outlook.

Until then, Cardano’s price structure and momentum indicators continue to signal downside risks, with $0.2000 remaining the critical level to watch.

At press time, $ADA trades at $0.2065, up 1.57% over the past 24 hours. Nonetheless, $ADA remains down 7.17% over the past week and 16.09% over the past month, highlighting its broader bearish trend.