Following a bearish pathway, the ADA price trades continue forming lower high formations in the 1-day chart. The downtrend brings Cardano price under the 50-day EMA line, leading to a resistance trendline formation.
Currently, the ADA price shows a bullish failure to breach the overhead trendline to reclaim trend momentum.
Cardano is currently trading in a sideways trend between $0.265 and $0.235 zones. Moreover, the recent bearish turn within the channel declined the ADA price by 4% within two days. This indicates a stronger bearish presence that may soon challenge the bottom support zone.
Parallel to the downtrend, the possibility of a double bottom pattern forming at the support zone arises. However, the buyers must actively absorb the incoming supply to bounce back the Cardano price higher to challenge the overhead trendline.
Technical indicators:
Reflecting the underlying bearish sentiments, momentum indicators display ADA price on a razor-sharp edge.
MACD indicator: With the MACD and signal lines ready for a bearish crossover, the indicator projects a downfall rally.
RSI indicator: Despite the pullback, the RSI line maintains an uptrend and continues to display a bullish divergence.
Will ADA Price Sustain Above $0.235?
With bears taking over the short-term trend, the possibility of a downtrend below the consolidation range is increasing. Moreover, Bitcoin falling by more than 1% warns of a market-wide correction.
In case the ADA price falls below $0.235, the market value can plunge to as low as $0.20.
Conversely, a bullish reversal from $0.235 could once again test the resistance trend line, resulting in a 10% price increase to $0.25.
