Is ADA’s Downtrend Confirmed? Will Cardano Crash Further in 2024?
- Why Is ADA Struggling Below the 50-Day EMA?
- Will ADA Retest the $0.333 Support?
- What Do the Indicators Say?
- Is the 4-Hour Chart Signaling More Weakness?
- What’s Next for Cardano?
- FAQs: Cardano (ADA) Price Analysis
Cardano (ADA) is stuck in a bearish technical structure, with the 50-day EMA acting as a stubborn resistance level. Despite a brief recovery attempt, ADA failed to break above this key level and is now consolidating NEAR the $0.333 support zone. The RSI and MACD indicators show weak momentum, suggesting further downside risk. If the $0.333 support breaks, ADA could plunge deeper. However, a rebound above the 50-day EMA might signal a trend reversal. Let’s dive into the details.
Why Is ADA Struggling Below the 50-Day EMA?
Since October 10, cardano has been trading below the 50-day Exponential Moving Average (EMA), reinforcing a dominant downtrend. A recent recovery attempt was swiftly rejected at this level, confirming its role as a strong dynamic resistance. The formation of an M-Pattern further validated the bearish outlook, with ADA now hovering in a tight consolidation phase. This indicates a temporary balance between buyers and sellers, often preceding the next impulsive move. Historically, such patterns have led to retests of key support levels—in this case, the $0.333 zone.
Will ADA Retest the $0.333 Support?
The $0.333 level is a critical support zone. A retest seems likely from a structural perspective, but the key question is whether buyers will step in. If support holds, we could see a double-bottom formation or a descending triangle, where the 50-day EMA continues to act as resistance. A breakout above this EMA WOULD be the first bullish signal, potentially pushing ADA back above $0.40. However, if the support fails, the downtrend could accelerate, dragging ADA lower.
What Do the Indicators Say?
The Relative Strength Index (RSI) is neutral, showing neither overbought nor oversold conditions. However, its inability to gain strength suggests weak buying momentum. The Moving Average Convergence Divergence (MACD) also reflects this—while negative momentum is slowing, there’s no clear bullish crossover yet. Without confirmation from these indicators, a sustained reversal seems unlikely for now.
Is the 4-Hour Chart Signaling More Weakness?
In the shorter timeframe, ADA shows no significant buying interest. After two strong bearish candles, a recovery attempt failed at the $0.37 resistance. The price has struggled to reclaim the 13-EMA, reinforcing short-term bearish pressure. Until ADA breaks above $0.37, the risk of further downside remains high.
What’s Next for Cardano?
Traders should watch the $0.333 support closely. A breakdown could trigger a steeper decline, while a rebound above the 50-day EMA might open the door for recovery. Given the lack of bullish momentum, caution is advised. For those trading ADA, BTCC offers a secure platform with deep liquidity—just saying!
FAQs: Cardano (ADA) Price Analysis
Why is ADA struggling below the 50-day EMA?
The 50-day EMA has become a strong resistance level, rejecting recent recovery attempts and reinforcing the downtrend.
What happens if ADA breaks $0.333?
A breakdown could accelerate selling pressure, while holding this level might lead to a consolidation or reversal pattern.
Is now a good time to buy ADA?
Without strong bullish confirmation, it’s risky. Wait for a breakout above the 50-day EMA or a clear reversal signal.
