Crypto price prediction: Cardano (ADA) signals downtrend, more fall creates bearish threat

Ada crypto price prediction:

Cardano (ADA) crypto analysis

Cardano (ADA) experienced a sharp price drop last week, falling by 11.31% after being rejected at its weekly resistance of $1.18. As of Monday, the cryptocurrency continues to decline, trading around $0.94. This marks a significant pullback for ADA, which has struggled to maintain upward momentum in recent days.

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If the downward trend continues, Cardano could face a further decline of up to 20%, potentially reaching its next weekly support level at $0.74. This outlook highlights a challenging period for the cryptocurrency as bearish sentiment dominates the market. Investors are closely watching these levels, as breaking below the support could signal a deeper correction.

Technical indicators reinforce the bearish outlook. The Relative Strength Index (RSI) currently sits at 45.10, below the neutral 50 level, and is pointing downward, indicating weakening buying pressure. Furthermore, the Moving Average Convergence Divergence (MACD) showed a bearish crossover on Sunday, signaling a continuation of the downward momentum in the short term.

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On the flip side, if Cardano manages to recover from its current level, there is potential for a rally. In this scenario, ADA could revisit its weekly resistance at $1.18. For this to happen, the market would need renewed buying interest and a shift in momentum, which could be influenced by broader market factors or positive news.

Cardano is navigating a crucial phase where its price could either drop further toward support or rebound toward resistance. The current technical indicators favor the bearish case, but investors remain hopeful for a turnaround. As the market evolves, traders should keep an eye on key levels and indicators to anticipate the next move.