Cardano (ADA) price faces pressure following recent declines affecting major cryptocurrencies. Analysis of the situation indicates that ADA may encounter further difficulties unless it can recover key support levels.
Technical Analysis of ADA Price Decline
Over the weekend, ADA price dropped below an important technical level. Veteran analyst Sjuul from AltCryptoGems noted that ADA's current breakdown fits a textbook distribution pattern. 'Unless ADA reclaims $0.66, further downside may follow,' he stated in his tweet.
Cardano Price Distribution Schematic
According to the presented chart, ADA price followed the Wyckoff Distribution schematic, often used to identify market tops. This pattern typically includes a strong uptrend, sideways trading, false breakouts, and eventual breakdown. After the completion of the final stage, known as 'upthrust after distribution' (UTAD), the price experienced several failed retests before breaking down below the $0.66 support level.
Ongoing Weakness of ADA and Prospects
Since March, ADA price has been forming lower highs, reflecting bearish momentum. Current movements reinforce that trend, indicating that sellers remain in control. 'Unless volume steps in and the price reclaims $0.66, the asset could drift lower toward previous support zones,' added Sjuul. As the market remains on alert for ADA's stabilization, investors are advised to exercise patience.
The dynamics of Cardano (ADA) price raise concerns among analysts, with the situation remaining under the control of sellers. Without a recovery above the critical level, prices may continue to decline, highlighting the importance of monitoring future changes in the market.
