The price of Cardano (ADA) has recently fallen beneath the critical $1 mark, raising concerns about a further bearish continuation. Sellers are now targeting the 200-day Exponential Moving Average (EMA) at $0.968. Over the past 24 hours, Cardano’s price has dropped by 12.39%, reflecting the broader weakness in the cryptocurrency market. The market capitalization of Cardano has declined to approximately $34.94 billion, further underscoring the pressure on its price action.
This short-term pullback has increased the probability of a sustained bearish trend, even as Cardano holds its position among the top 10 cryptocurrencies.
Cardano’s Price Action: A Closer Look
An analysis of Cardano’s 4-hour chart reveals an inability to sustain momentum above the $1.117 resistance level after a brief breakout attempt. This failure, combined with broader market declines, has resulted in a steep correction that caught bullish traders off guard.
The breach of the $1 psychological level has left ADA testing the 100-EMA at $0.991, which is acting as temporary support. This level is slowing the bearish momentum and guiding the price into a sideways consolidation phase.
Further downward pressure has brought ADA closer to the 200-EMA, which is helping to reject lower price levels. This suggests strong demand at these levels, despite the sharp pullback. However, the 20-EMA continues to decline significantly, indicating the potential for a bearish crossover with the 50-EMA.
The 4-hour Relative Strength Index (RSI) has dipped below the halfway mark, reflecting weaker bullish momentum. However, this decline may also hint at a possible reversal as the price consolidates.
Despite the recent downturn, the technical indicators paint a neutral picture, with neither strong bearish nor bullish momentum dominating the market.
Price Targets for Cardano
Cardano’s price currently sits at a pivotal level, just below the $1 psychological threshold. Increased market volatility adds further uncertainty to ADA’s near-term price direction.
If a V-shaped recovery occurs, the 20-EMA at $1.044 and the $1.117 resistance level are likely to be the first targets for buyers. Conversely, a continuation of the bearish trend could push ADA towards the 200-EMA support at $0.968 and potentially to the $0.94 horizontal support level.
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The sharp drop below $1 may attract buyers seeking opportunities near key psychological and technical levels. However, the ongoing broader market selloff implies that further downside cannot be ruled out.
Will Cardano Recover?
The recent price action suggests Cardano is navigating a critical juncture in its market trajectory. While the $1 psychological level remains a key area of interest, both buyers and sellers are expected to influence price movements in the coming days.
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Traders should monitor the 200-EMA support and 20-EMA resistance for clearer signals about ADA’s potential direction. Increased market volatility and uncertainty highlight the importance of exercising caution in trading decisions. Whether Cardano can stage a recovery or continue its descent will largely depend on broader market conditions and demand at current price levels.
