Cardano (ADA) Price Analysis: Downside Risks and Critical Levels to Watch

Market Structure: Bearish Consolidation The Cardano (ADA) 4-hour chart shows a sideways channel with a bearish bias. Price is oscillating between resistance at $0.665–$0.670 and support at $0.640–$0.645, with lower highs signaling weakening bullish momentum. This suggests potential distribution and a further bearish move. Despite an attempt to break resistance, the price was rejected and now sits at $0.6557, below the 50-period DEMA. This failure to hold above the mid-range hints at underlying bearish pressure. Indicator Analysis: Bearish Momentum 50-period DEMA (green): Price is struggling to maintain above it, reflecting indecision and a lack of short-term bullish control. 200-period EMA (red): Positioned well above, reinforcing the broader bearish trend. Rallies toward this level will likely face resistance. This EMA alignment indicates continued bearish momentum unless there’s a significant shift in market sentiment. Support and Resistance Levels Resistance: $0.665–$0.670 (supply zone with repeated rejections) Support: $0.640–$0.645 (key demand zone) Major Support: $0.5925 (historical demand level, a potential downside target) These levels will be key in determining the next move. Price Outlook: Bearish Continuation Likely Given the rejection near $0.66 and the formation of lower highs, a bearish continuation is likely if the price breaks below $0.640. A clean breakdown could target $0.62, then $0.5925. For a bullish reversal, the price must reclaim $0.670 with strong volume, opening a potential move toward the 200 EMA around $0.70–$0.72, though this seems unlikely without a significant shift in momentum. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Actionable Insights Bearish Setup: A close below $0.640 likely targets $0.62 and $0.5925. Bullish Setup: A reclaim of $0.66 with volume could lead to a retest of $0.670 and possibly $0.68. Avoid Long Positions within the current range as price action is choppy and lacks clear direction. ADA remains in a bearish consolidation, with lower highs and rejections at resistance indicating weakness. A break below $0.640 confirms further downside, while a move above $0.670 with strong volume could shift the bias upward. Monitor key levels and manage risk accordingly. 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. Follow us on X , Facebook , Telegram , and Google News The post Cardano (ADA) Price Analysis: Downside Risks and Critical Levels to Watch appeared first on Times Tabloid .