The post Cardano (ADA) Faces a Tough Test – Will It Break Down or Bounce Back? appeared first on Coinpedia Fintech News
Cardano (ADA) is facing a big test as market conditions grow tense. While the entire crypto market is slowing down and moving sideways, ADA is now struggling to hold its ground. The token is now trading just above a key support level of $0.66, and if it fails to hold, a sharper drop around $0.50 could be next.
So, what’s going on with ADA?
Bears Are Gaining Strength
According to the THEDEFILINK, a core DeFi Researcher, one of the biggest warning signs is coming from the Elder-Ray Index, a tool that tracks the battle between buyers and sellers. Right now, the buyers are backing off.
Each day, the signal weakens, which suggests that sellers are slowly taking control. This kind of setup often shows up before a price reversal.
Another red flag is the Chaikin Money Flow (CMF), which tracks how money moves in and out of an asset. For ADA, the CMF is negative, sitting at -0.09, and it has stayed there all week.
This tells us that more money is leaving ADA than coming in, showing that sellers are in charge for now.
$0.66 – A Critical Level to Watch
As of now, ADA is hanging around $0.71, just above the $0.66 support level. Meanwhile, analysts warn that ADA could revisit its yearly low of $0.50 if it falls below the support level.
On the flip side, if bulls manage to defend this zone, there’s still a chance for a rebound up to $0.76. But time is running out.