The cryptocurrency market remains in a corrective phase, with the downturn ongoing after the November rally. Events such as new tariffs by Donald Trump and the Bybit hack have added complexity.
Market Situation
Amid uncertainty, Cardano (ADA) has experienced a 25% decline over the last 60 days, bringing its price to a support level at $0.65. ADA's price action mirrors that of Pepe (PEPE), which faced a significant selloff after breaking a similar support level.
Technical Analysis of ADA and PEPE
Analyzing the daily charts of ADA and PEPE, both tokens show a strikingly similar trajectory. After rejection from ascending resistance lines, ADA formed a descending broadening wedge, while PEPE developed a falling wedge. Currently, ADA trades within the $0.61 to $0.68 support range, testing the 200-day moving average, a historically strong support. However, PEPE's failure to hold a similar level led to a 32% descent.
Key Observations and Forecasts
With ADA at a crucial point, traders should closely monitor price action around this support zone. A break below $0.61 increases downside risk, mirroring PEPE's recent breakdown. Conversely, defending this level might lead to a bullish reversal and price recovery. Current market volatility, driven by macroeconomic events and crypto incidents, underscores the importance of the coming days for ADA's trajectory.
This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions. The coming days will be crucial for ADA's support at $0.61, determining whether there is potential for decline or growth.
