- Cardano faces bearish pressure as its price drops to $0.65, with a potential decline toward $0.50.
- Cardano’s ETF proposal sparks optimism, but market volatility keeps the downside risk high.
Cardano (ADA) has taken a hit. The price has dropped by 10% in a wedge pattern, raising concerns of a further decline. ADA currently sits at $0.65 after an overnight crash of 10.05% and a 5.42% drop in intraday trading.
With Bitcoin slipping below $90,000, bearish sentiment intensifies. The question now is: Will Cardano break below the $0.65 support level and head toward $0.50?
Technical Indicators Flash Warning Signs
The daily chart reveals troubling signs. Cardano failed to break past the 20-day EMA, triggering a reversal. The price has breached the 200-day EMA at $0.7289 and tests the 38.20% Fibonacci level.
A negative crossover between the 50-day and 100-day EMAs looms. Meanwhile, the Chaikin Money Flow Index has turned negative, signaling a potential deeper plunge.
If selling pressure continues, ADA may fall to the 23.60% Fibonacci support at $0.53.
Volatile Market Sentiment Amid ETF Hopes
Market sentiment remains shaky. Cardano’s funding rate dropped to 0.0045%, while open interest plunged by 15% to $544.94 million. The long-to-short ratio sits at 0.9216, reflecting overall caution.
Interestingly, Binance traders show minor optimism with a ratio of 2.73. Adding to the hope, the SEC has acknowledged filings to list a Cardano ETF through NYSE Arca. If approved, this could spark a much-needed recovery.
What’s Next for Cardano?
The immediate outlook remains bearish. A drop to the psychological support at $0.60 appears likely. Should broader market conditions stabilize, the ETF news could drive a bullish reversal.
On the upside, a successful breakout could push ADA toward the $0.7746 resistance level. For now, traders should watch the $0.50 to $0.60 zone closely. A move below could spell more downside, while a bounce may reignite bullish momentum.
