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- ADA drops 3.91% in 24 hours, with trading volume down by 28.06%, signaling growing investor concerns.
- Analysts watch the support zone between $0.578 and $0.688 as critical for ADA’s potential recovery.
- RSI at 21.21 indicates oversold conditions, and negative MACD momentum suggests further decline.
Cardano (ADA) is currently trading at $0.6986, which is a 3.91% decrease over the last 24 hours. The value of the trading volume has dropped significantly by 28.06%, to $1.01 billion. Over the past week, the price of ADA has dropped by 15.32%, and traders are becoming alarmed.
Source: CoinMarketCap
Crypto expert More Crypto Online highlighted that there is uncertainty about the price action of ADA. Although analysts believe that wave IV may be over, it is still unclear if ADA will be able to bounce back. To achieve a considerable upward movement, wave A should develop a three-wave structure. The support zone ranging between $0.578 and $0.688 is vital.
Source: X
ADA Tests Key Support After V-Pattern Reversal
Alpha Crypto Signal, another analyst, highlighted the existence of a V-shaped trend, which is an inverted V-shape, on the ADA daily chart. This trend is normally an indicator of a slowing down in buyer momentum. The sharp reversal setup indicates that ADA is not gaining much momentum towards the upside.
ADA is now testing a crucial support at $0.679. This is an important level, as it is at the 50-day Simple Moving Average (SMA). This could result in a recovery if buyers step in. However, the failure of the support could result in more ADA losses.
Source: X
ADA will aim at lower prices once it goes below the $0.679 level. The bulls need to keep this support, otherwise, they will experience further losses. If ADA closes above the Exponential Moving Average (EMA-9), it will recover. Bullish momentum might resume if this happens. Otherwise, ADA can continue with the downward trend.
Also Read: Ethereum Price Prediction: Can It Rebound to $3,733 or Fall Below $3,091?
Cardano RSI and MACD Signal Further Decline Ahead
The Relative Strength Index (RSI) of ADA is at a level of 21.21, indicating the token is oversold. Undervaluation is indicated when an RSI is less than 50. But the market is still bearish and it is doubtful when buying interest will come in.
ADA’s Moving Average Convergence Divergence (MACD) momentum is negative, where the MACD line extends to -0.0007, below the signal line that extends to -0.0082. This indicates that the decline can continue until a turn in the market.
Source: TradingView
Volume and Open Interest Drop Indicate Bearish Sentiment
According to CoinGlass data, volume has also declined by 32.50% to $1.89 billion. Open interest decreased by 5.36% to $1.21 billion. The ADA OI-weighted funding rate stands at 0.0025%, which means that investors are not confident. The numbers indicate a conservative market mood.
Source: CoinGlass
Cardano is under tremendous pressure with the price and volumes heading downwards. The coming days are significant, and ADA will test important support zones. Without maintaining this support, additional drops can occur. Traders are cautioned to keep a watch on the situation.
Also Read: Bitcoin on the Edge: Will $113K Hold or Trigger a Breakdown?
