Cardano (ADA) finds itself at a critical juncture this week, as sellers have managed to wrest control, pushing its price below the psychological $1 mark. The cryptocurrency now hovers around $0.92, leaving investors questioning whether it will regain upward momentum or slide further into bearish territory.
Sellers Dominate as ADA Slips Below $1
Optimism was high earlier in the week, with many hoping ADA could consolidate above $1 and aim for the next resistance at $1.30. However, by midweek, bearish sentiment returned, and sellers successfully drove the price downward. Now trading at $0.92, ADA has fallen close to its critical support at $0.90, a level that could define its near-term trajectory.
Momentum Reversal Raises Concerns
Technical indicators suggest a reversal in momentum, with the daily Relative Strength Index (RSI) forming lower highs, signaling waning strength. Similarly, the MACD histogram has been shrinking, further hinting at a potential deepening of the correction. If the crucial support at $0.90 fails, ADA could face a significant drop to $0.80, heightening concerns among investors.
Buy Volume Fades, Bearish Trend Persists
Cardano’s struggles are further underscored by a marked decline in buy volume. After peaking in November, the volume has been steadily decreasing, contributing to a bearish trend. The lack of sustained buying pressure has left ADA vulnerable, and unless buyers step in, the cryptocurrency may continue to face headwinds.
Key Levels to Watch
- Support: $0.90
- Resistance: $1.30
Holding the $0.90 support is paramount for bulls to prevent a deeper correction. However, breaking past $1 and heading toward $1.30 remains a formidable challenge given the current market dynamics.
Conclusion: A Pivotal Week Ahead
This week could prove decisive for Cardano. If buyers manage to defend the $0.90 support, ADA has a chance to stabilize and possibly regain bullish momentum. However, the absence of strong buy volume and weakening technical indicators point to a challenging road ahead. Investors should closely monitor key levels, as a breach of $0.90 could usher in further losses.
Will bulls rally to reclaim control, or will bears deepen their grip? The coming days will likely set the tone for ADA’s performance in early 2025.
4o
