With Cardano (ADA) price crossing below key support levels, sellers are now targeting a retest of $0.70.
As the altcoin market faces a downturn with Bitcoin approaching $95,000, major cryptocurrencies such as Ethereum, Cardano, and XRP are falling below crucial support levels. Amid increasing sell-offs, ADA price trend marks its fifth consecutive bearish day.
The ADA trend indicates significant downside risk with the price falling below $0.90. Could the volatile market cause Cardano price to drop to $0.70?
Cardano Price Analysis
On the 4-hour chart, Cardano price is showing a bearish channel pattern. The ongoing correction within the descending channel has broken below a key support trend line.
This breakdown suggests a bearish continuation, and the price is likely to extend the downtrend. Currently, the Cardano market price is $0.839 and a bearish engulfing candle is forming on the 4-hour chart.
This engulfing candle breaks the support trend line and is about to close below it, increasing the probability of a drop to the psychological support level of $0.70.
The 200 EMA on the 4-hour chart also produced a bearish crossover. The 4-hour RSI also entered oversold territory, further indicating a sell signal for Cardano.
ADA Price Targets
On the daily chart, Cardano forms its fifth consecutive bearish candle. This undermines the previous accumulation phase above $0.90 and has resulted in a break below the 50-day EMA.
As the downtrend continues, Cardano price will likely test the 100 EMA around $0.71. Therefore, the daily and 4-hour charts point to a 13-15% downside risk.
However, if the 4-hour candle closes bullishly above the support trend line, a possible reversal could push the price back towards the 200 EMA at $0.976.
