Cardano (ADA) continues to face bearish pressure after completing a bearish AB=CD pattern. Analysis shows that key support levels play a vital role in determining the market's future direction.
Bearish AB=CD Completion
Cardano recently confirmed the completion of a bearish AB=CD pattern, with a rejection forming near $0.95. This area has acted as a strong supply zone coinciding with declining momentum. The market is now trading below the 9 EMA at $0.88, signaling seller control.
Trading volume spiked during ADA's rally towards $0.95, indicating aggressive selling pressure. The move below the 9 EMA diminishes recovery chances, while the next key support could be the 50-day SMA around $0.77.
Critical Support at $0.74–$0.77
The $0.74–$0.77 support area remains pivotal for ADA. Losing this level could amplify seller pressure towards $0.70–$0.68. Traders are closely monitoring price reactions as ADA approaches these key levels.
Alpha Crypto Signal emphasizes that failing to hold this area would confirm the corrective phase. Conversely, bulls might see this zone as an opportunity to defend ADA and attempt a short-term bounce.
Need to Reclaim $0.90+
For ADA to regain positive momentum, the price must break decisively back above $0.90. This would indicate that the market has absorbed recent selling pressure and could retest $0.95, potentially reaching $1.00 if volume expands.
Price action shows any intraday rebounds have been capped by sellers, reflecting strong distribution. A sustained move above the 9 EMA would be the first sign of demand returning to the market.
Currently, Cardano faces bearish trends, with key support levels that may affect trading direction. A full recovery is only possible with a reclaim above $0.90.
