- Cardano (ADA) has experienced significant losses, dropping over 24% in the past month and failing to hold a key support level at $0.64, signaling continued bearish momentum.
- With growing short positions and weak price action, ADA could potentially decline further, reaching the $0.43 level in the coming days.
As the cryptocurrency market experiences a rollercoaster of ups and downs amidst ongoing tariff wars, Cardano (ADA) has become a focal point of speculation. With ADA’s recent price action signaling a potential recovery, the question on every trader’s mind is whether this is a genuine rebound or merely a brief correction before further decline.
Cardano’s Recent Struggles and Key Support Level Breakdown
Over the past month, ADA has taken a significant hit, shedding over 24% of its value. The most concerning part of this drop is the asset’s failure to hold a critical support level at $0.64, a price point historically known for triggering rebounds. CoinMarketCap’s data shows that Cardano has slipped below this level, and the technical indicators suggest further downside momentum could be looming.
Technical Analysis: Bearish Momentum Dominates
Technical analysis from Coinpedia paints a grim picture for ADA’s immediate future. After closing a daily candle below the key support level of $0.64, the asset has also retested this breakdown point, reinforcing the likelihood of continued decline. On shorter time frames, such as the Four-Hour Chart, Cardano is still following an upward trend supported by an ascending trendline. However, the primary direction remains bearish, with the price trading below the 200 Exponential Moving Average (EMA), indicating weak market sentiment.
Potential Price Decline: Where is ADA Headed?
Given the current price action and market behavior, there’s a real risk of further downside. If ADA fails to maintain support and closes a four-hour candle below the trendline, it could plunge by as much as 20%, possibly reaching the $0.43 level in the days ahead. This would represent a significant setback for ADA holders, especially after the recent volatility.
Traders Bet Against Cardano’s Recovery
Current market sentiment shows that many traders are betting on further bearish price action. On-chain analytics from Coinglass reveal that traders have placed $16.40 million in short positions, further strengthening the case for ADA’s downward pressure. With ADA trading near $0.575 and a notable decline in trading volume, it’s clear that investor participation is dwindling, and the bearish outlook persists.
Caution Ahead for ADA Traders
With ADA trapped in a bearish market trend and short positions growing, Cardano’s price prediction for the near future remains bearish. Traders should proceed with caution, as further price drops could be on the horizon, with the potential to reach lower support levels in the coming days.
