Cardano (ADA) Risks Plunge to $0.55 After Losing Critical $1 Support
The cryptocurrency market has been volatile, and Cardano (ADA) is no exception. Following its inability to hold above the $1 support level, the asset faces the risk of a significant price drop. Analysts warn that ADA could fall to $0.55 if bearish trends persist.
ADA Consolidates Around $1 but Faces Downward Pressure
Cardano has been closely mirroring Bitcoin’s (BTC) movements in recent months, consolidating around the $1 mark. However, with Bitcoin showing signs of potential corrections, ADA’s prospects appear even bleaker.
On the USDT paired chart, ADA faced rejection at the $1.3 resistance level and has since been trending downward. The price is now approaching the $0.75 support level, a critical zone for traders. If this level is breached, ADA could tumble further, targeting its 200-day moving average (MA), currently positioned near $0.55.
ADA/BTC Pair Mirrors Weakness
The situation on the ADA/BTC chart paints a similar picture. For weeks, ADA has consolidated without clear upward momentum. Analysts are closely watching the 900 SAT support level, as a breakdown could accelerate losses. A decline toward the 200-day MA around 700 SAT, or even lower, is a plausible scenario if bearish sentiment prevails.
Market Conditions and Bitcoin’s Influence
Cardano’s price trajectory is heavily influenced by the broader cryptocurrency market, particularly Bitcoin’s performance. Should BTC experience further corrections, ADA is likely to amplify these losses due to its higher volatility. Analysts warn that the current bearish trend in the market could lead ADA into a prolonged downward phase marked by increased price chopping.
Key Takeaways
- ADA loses $1 support, increasing the likelihood of a drop to $0.55.
- USDT pair shows ADA consolidating near $0.75, with potential to breach this support and target its 200-day MA.
- BTC pair indicates a similar consolidation, with critical support at 900 SAT and a possible drop to 700 SAT if broken.
- Market trends remain bearish, and ADA’s performance is closely tied to Bitcoin’s price movements.
Conclusion
With Cardano struggling to maintain key support levels, its immediate future remains uncertain. Traders and investors should remain cautious, as further declines in Bitcoin could push ADA below its critical thresholds. A break below $0.75 on the USDT chart or 900 SAT on the BTC chart could mark the start of a deeper bearish phase, with prices potentially retreating to $0.55 or lower.
