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Will Cardano (ADA) Survive? How to Prepare for Another Potential Drop
Cardano has recently initiated a downturn, breaking below the critical $0.5750 mark. ADA is now in a consolidation phase, facing challenges in maintaining support above the $0.550 level. This latest descent below $0.580 and $0.5750 has positioned ADA under the $0.570 price point and the 100-hourly simple moving average, signaling a bearish phase.
Cardano’s Struggle Amidst Market Pressures
In recent trading sessions, Cardano diverged from its peers like Bitcoin and Ethereum by not just slipping below $0.580, but also plummeting past the $0.5750 threshold. This decline has entrenched ADA into a bearish territory, exacerbated by the price dropping below the 23.6% Fibonacci retracement level of the recent upward trajectory from the $0.5102 low to the $0.5938 peak.
A critical bearish trend line has formed, providing resistance near $0.570 on the hourly ADA/USD chart. Currently, ADA trades below this line and its 100-hourly SMA, hinting at potential further losses if it fails to maintain the $0.550 support zone.
Potential Resistance and Support Levels
On the upside, ADA encounters initial resistance near the $0.570 zone. Subsequent resistance levels are mapped at $0.5850 and $0.5920. A breakthrough above $0.5920 could potentially trigger a robust rally, possibly driving prices towards the $0.620 mark, and further gains could extend to $0.6350.
Conversely, a failure to overcome the $0.5850 resistance might lead to another price decline. Immediate support is found near $0.5520 and the 50% Fibonacci retracement level. Breaking below the next major support at $0.530 could lead to a test of the $0.5120 level, with the crucial $0.50 support zone potentially acting as a bulwark where bulls could regroup.
Technical Indicators Highlight Bearish Momentum
The Hourly MACD for ADA/USD is showing an increase in bearish momentum, while the Hourly Relative Strength Index (RSI) has dipped below the 50 mark, underscoring the growing pressure on Cardano.
Navigating the Turbulent Waters
Investors and traders should monitor these support and resistance levels closely, as ADA’s ability to sustain above or fall below these points could dictate the short-term market dynamics. For more detailed insights and updates on Cardano and other cryptocurrencies, visit our crypto section.
In summary, Cardano faces significant hurdles and its future movements will be crucial in determining whether it can withstand another downturn or if it will succumb to the bearish pressures.
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