Cardano (ADA) has faced a significant setback, dropping below the crucial $1 level as the broader cryptocurrency market pulls back. This decline comes amid a 1.62% drop in the total crypto market cap (excluding Bitcoin and Ethereum), leaving the altcoin sector at $1.05 trillion. Cardano, one of the most prominent altcoins, has not been spared, suffering a 5.05% decline in the past 24 hours and a 13.07% drop over the past week.
ADA’s market cap has fallen to a value of around $33.7 billion, raising concerns about whether sellers will push the price further toward critical support levels.
Cardano’s Price Movement: A Closer Look
On the daily chart, Cardano’s price action reveals a notable drop below the psychological $1 level, signaling a bearish turn. The pullback from the $1.10 zone has formed a textbook double-top reversal pattern, a bearish indicator that suggests the potential for further declines.
As of report time, ADA is trading at $0.9597, reflecting a 5.05% decline in 24 hours, extending its correction phase. This marks the second consecutive bearish candle, highlighting the asset’s struggle to break above the 20-day Exponential Moving Average (EMA).
The intensifying selling pressure is also evident as the price approaches the 50-day EMA. If sellers maintain control, the $0.90 support level could soon be tested. This level aligns with the neckline of the double-top pattern, making it a critical point for ADA’s price action. Should this support fail, the next significant level lies at $0.8365, coinciding with the 100-day EMA.

Bearish Signals Gain Momentum
The bearish outlook for Cardano is further reinforced by technical indicators. The daily Relative Strength Index (RSI) has dropped below the midpoint, reflecting increasing selling pressure and a lack of bullish momentum.
At the same time, the broader market’s decline has not provided much relief for ADA. Despite temporary rebounds in other assets, Cardano remains under pressure, suggesting that sellers are firmly in control for now.
Potential for Recovery: Key Levels to Watch
While the current trend is bearish, Cardano’s higher-low formation on the daily chart offers a glimmer of hope for a potential bullish reversal. If the broader cryptocurrency market stabilizes, ADA could regain key resistance levels.
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The first challenge for buyers will be reclaiming the $1 psychological level, a critical point for restoring confidence. Beyond that, the 23.6% Fibonacci retracement level at $1.05 represents another hurdle. A break above these levels could set the stage for Cardano to form an ascending triangle pattern, with the $1.10 resistance zone as the upper boundary.
However, the bullish scenario hinges on ADA holding above the $0.90 support level. A breach of this level would invalidate the higher-low formation and pave the way for a deeper correction. In that case, the price could drop toward the 200-day EMA at $0.70, marking a significant shift in sentiment.
Cardano’s Crossroads
Cardano’s inability to hold above $1 highlights its vulnerability amid broader market weakness. The asset is currently navigating a critical juncture, with its price action reflecting the battle between buyers and sellers.
The coming days will be pivotal for ADA as it tests key support and resistance levels. A recovery above $1 could reignite bullish momentum, while a drop below $0.90 may trigger further declines.
For now, investors should closely monitor Cardano’s interaction with these critical levels and broader market dynamics to gauge its next move. As the cryptocurrency market continues to evolve, ADA’s ability to navigate these challenges will determine its trajectory in the months ahead.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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