- Cardano (ADA) faces crucial support at $0.63; a breach could trigger a drop to $0.54.
- A descending channel indicates ADA’s bearish trend, with lower lows signaling more downside.
- ADA’s future direction hinges on defending the $0.63 level or breaching it for further gains.
Cardano (ADA) is in a bearish channel, and its price and technical indicators are equally concerning. Analyst Ali Martenez noted that ADA is bearish and is challenged by crucial support at $0.63. If this support level is breached, then a downward movement towards $0.54 can occur.
This pattern shows that ADA is on a downward trend, as portrayed by the descending channel. The price remains capped at the upper limit that has been put as a ceiling for the price action. Cardano’s price has also been in a move to form lower lows in the chart – a clear indication of a bearish trend. This implies that the cryptocurrency is under downward pressure in the market.
Source: X
Critical Support at $0.63
A particularly significant level holding the price now is $0.63. Nonetheless, if ADA no longer receives this support, we may have to account for a further drop. The following level, which may act as support, is $0.54. If this level breaches, it could slide to a more bearish trend, wherein ADA might smell the dirt at even new low levels.
As long as ADA can sustain on the $0.63 level, there might still be a possibility of a reversal. Such a bounce off this support level could see ADA sliding over the upper trendline of the descending channel. In this case, ADA could possibly move up to further levels of resistance. Possible reversal points may be $0.74 and above, which indicates a bull run.
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Volume is also one of the factors that will influence the future movement of ADA. Should the price go above the upper trend line with increasing volume, this means that there is increased buying pressure. On the other hand, a breakout without enough volume might be a fakeout, which will keep ADA range-bound within the channel. As of press time, ADA is trading at $0.65, showing a 0.10% decline over the past day.
The next few days will define the direction of the ADA token price. The traders will be waiting for more evidence that the prices will either rise or fall. Thus, the ability of ADA to defend or breach the $0.63 support level will determine the short-term direction for Cardano. Any break above or below this level will determine the direction of the trend in the future.
