Cardano (ADA) has once more dropped below the crucial $0.3389 support level, sparking fears of an extended bearish phase. This pivotal level has previously served as a robust line of defense for ADA, but its recent breach suggests that sellers may now be gaining the upper hand. With ADA navigating lower levels, investors are left questioning whether this slip could set the stage for a deeper downtrend.
On the 4-hour chart, ADA has recently broken below the $0.3389 mark, with its price now exhibiting strong bearish momentum as it trades beneath the 100-day Simple Moving Average (SMA). This positioning under the SMA is a key indicator of a possible prolonged downside move, suggesting that sellers are currently in control. If selling pressure persists, the $0.2388 level will become an important area to monitor.
The 4-hour Composite Trend Oscillator for ADA is also displaying negative signals, as both the SMA line and the signal line have dropped below the zero level and are nearing the oversold zone. Typically, this movement indicates that selling pressure is intensifying, showing that sellers are becoming increasingly dominant in the market.
On the daily chart, Cardano is exhibiting pronounced downward strength, highlighted by a bearish candlestick pattern that signifies increased selling pressure below the $0.3389 mark. This pattern indicates that sellers are firmly in control of the market, relentlessly driving the price lower, and prompting a strong likelihood of further losses in the near term.
An in-depth examination of the 1-day Composite Trend Oscillator reveals that Cardano is likely poised for prolonged losses. Following its failure to break above the SMA line, the signal line is descending and moving into the oversold zone, indicating a significant negative shift in momentum. If this downward trend continues, Cardano may face considerable challenges in staging a recovery, which could lead to an extended period of sluggish price movement.
As Cardano faces a challenging market landscape, investors must monitor several key levels in the coming days. Attention should be directed toward the support level at $0.2388, which may provide crucial protection against additional downturns. Should ADA sustain its position above this threshold, it could pave the way for a potential recovery, aiming for the $0.3389 level and even higher.
Conversely, if ADA falls below the $0.2388 support level, it may indicate a deeper bearish trend, leading to possible declines toward other support levels and triggering heightened selling pressure.
 dips below $0.3389, sparking concerns of prolonged bearishness. With sellers in control, a watchful eye on the $0.2388 level is crucial.){kind=link}