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Cardano (ADA) Continues South: Heavy Losses Possible if Support Breaks
Cardano (ADA) has been in a downward spiral for the past few days, and it appears that the cryptocurrency is poised to continue its southward trajectory. The recent failure to break above the $0.720 resistance level has led to a sharp decline, with ADA now trading below $0.550.
As shown by the daily price chart, the bears have taken control of the market, and there are no signs of a reversal anytime soon. The bears’ dominance is evident in the formation of a clear descending trend line on the chart, which indicates that the downtrend will continue as long as the cryptocurrency stays below the $0.620 resistance level.
Cardano’s price has been consolidating losses after forming a low at $0.5114. This consolidation phase could be seen as an opportunity for bulls to stage a comeback and push the price back above the aforementioned resistance levels. However, this appears increasingly unlikely given the bearish trend line that is now in place.
In addition to the lack of support from the $0.60 level, Cardano also faces stiff resistance at the 50-day simple moving average (blue). This barrier could lead to even more significant losses for ADA holders if broken.
With its current trajectory, there are high chances that the cryptocurrency will continue to fall below the crucial $0.5320 support level and potentially all the way down to the $0.5120 level, which would be a massive 30% decline from the current price. If this happens, investors should expect further heavy losses to ensue as the bears continue their relentless push towards even lower levels.
Furthermore, if Cardano’s price fails to break above the aforementioned resistance levels, there is a high probability that it will plummet to $0.50 and potentially even further down to $0.4650.
Source: coinchapter.com
