Cardano's (ADA) price has experienced a sharp decline, falling below the key support level of $0.76 amid increased seller influence.
Selling Pressure Increases
WingHaven's analysis shows that Cardano's price has broken down from a symmetrical triangle pattern on the four-hour chart, confirming sellers' control. The 50-period Exponential Moving Average at $0.85 now acts as a resistance, limiting recovery attempts. ADA remains below critical trendlines, reinforcing bearish sentiment.
Market Continues Downtrend
Coinglass data reveals that long positions at $0.804 and $0.84 amount to $9.11 million, while short positions total $5.45 million. The imbalance favors sellers, increasing the likelihood of continued downside. The Relative Strength Index (RSI) indicates oversold conditions, but recovery remains uncertain.
If Cardano Holds Long-Term Support
Ali Martinez's analysis offers a different perspective, emphasizing that ADA's long-term price structure could shift if the $1.20 resistance is broken. Historical data suggests Cardano often consolidates before major rallies, making these levels significant.
Cardano's price dynamics remain under pressure, but a shift above key levels could change the trend. Close monitoring of price behavior is necessary for potential reversal signals.
