ADA’s Price Drops 7%, Giving Bears Upper Hand on ADA’s Chart

Cardano (ADA) has displayed bearishness on its chart at the time of writing, as its price has fallen by 7%. The broader crypto market has also displayed a bearish wave over the past few days, with Bitcoin (BTC) bordering the $20,000 level and altcoins following suit.

ADA’s price also rose above the $0.55 resistance mark but failed to sustain itself above the price level. Now, bears have increased their presence in the crypto markets, resulting in the chart technicals for ADA displaying a bearish outlook.

The recent bear activity has halted bulls’ strength as the market movers have significantly depreciated on their respective charts.

As things stand, ADA has been trading near the $0.42 support zone. The selling pressure started as buyers exited the market. Should the selling pressure persist, it could drag the coin below the $0.42 level and nearer to the $0.33 price mark.

A push in ADA’s price at this point could see ADA’s price climb slightly, but it will most likely be termed a brief recovery.

The 4-hour chart for ADA/USDT shows how ADA’s price consistently posted lower highs in its move down. The move then hit a bottom at $0.4510 before recovering to the 9 Exponential Moving Average (EMA) line, with ADA’s price now trading at $0.4662 according to CoinMarketCap.

If buying strength returns, then ADA could revisit the $0.48 level. However, bears will remain strong until ADA trades above the $0.52 price mark for a substantial period. On the other hand, a fall from the current price level could make ADA touch a low at $0.33 over the upcoming trading sessions.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CQ. No information in this article should be interpreted as investment advice. CQ encourages all users to do their own research before investing in cryptocurrencies.