Cardano (ADA) at Risk of Further Decline Amid Fading Buying Pressure

Cardano (ADA) is facing renewed downside momentum as market data indicates a decrease in buying interest and selling pressure. After lacking to hold recent support levels, ADA’s price action indicates larger caution across the cryptocurrency industry.

Traders and analysts are sharply observing technical and on-chain indicators, which currently speculate a restricted bullish rally and the possibility of further consolidation or decrease if demand does not go up.

According to CoinMarketCap, at the time of writing, the coin is trading at $0.3917 with a 5.24% increase in rate. The market cap of the coin has exceeded almost $14.08 billion, and the coin’s volume is around $735.95 million.

Source: CoinMarketCap

Also Read: Cardano Joins Cyber Hornet Crypto 10 ETF; Could ADA Hit New Highs Soon?

Price Action Signals Weak Momentum for Cardano

ADA has fought to keep the upward momentum following its latest rebound endeavour. Price charts show a series of lower highs, a classic technical pattern related to decreasing trend strength. Volume has also decreased during recent recovery actions, indicating that traders are not entering the market with judgment. In contrast, selling activity has been steadier during pullbacks, reassuring the bearish bias in the short term.

From a technical perspective, ADA is trading near significant support zones that have previously been demand zones. A steady move below these levels could open the door for an extensive correction toward lower historical support areas.

On the upside, resistance remains firmly kept near recent breakdown points, where selling pressure earlier increased. Without a decisive breakout above these resistance levels, upward price movements may remain restricted.

ADA’s price chart reveals the downward momentum. It could climb toward the resistance (yellow) at around $0.408. Assuming the bullish pressure strengthens, it sends the coin’s price up to test the $0.420 range.

If a reversal occurs, the bears may push the token’s price down to the support level (blue) at $0.389. In case the downside correction gains more traction, the death cross could form and likely drive the asset’s price to a low of $0.360 or even lower. The moving average convergence divergence (MACD) indicator shows the coin experiencing a bearish momentum since the MACD line (blue) is below the signal line (orange).

Source: TradingView

The Relative Strength Index (RSI) is currently at 56.26, which is a neutral position, not excessively high, not excessively low. The pivot points have established the support levels at $0.4093, $0.4031, and $ 0.3942. The resistance levels of the token are at $0.4243, $0.4332, and $0.4394.

Source: CoinCodex

Also Read: Nasdaq-CME Crypto Index Launch Includes Cardano as ADA Eyes 182% Upside to $1.10