Cardano price seems to continue its downtrend without showing any bullish signs. ADA has fallen below an important support area and this pullback suggests a major bearish scenario. The potential bearish outlook is dependent on the status of another important support. Here are the details.
Cardano price looks ready for more drops
Cardano price has lost 8% today and further pullbacks are likely depending on the state of the cryptocurrency markets. This bearish scenario for the “Ethereum killer” depends on whether the $1.40 support level is maintained.
In the past, this level appeared as a resistance level when ADA was in the consolidation phase. Breaking this led to the start of a rally that pushed Cardano price to its all-time high of $3.11. The $1.8 support level also played an equally important role in pushing ADA higher. But the recent drop pushed ADA below $1.8 and raised the $1.40 support to defend the attack on panic sellers.
If selling pressure continues to build, investors can expect ADA to drop below $1.40. A daily close below this level would trigger a 24% drop to the $0.94 low to $1.04 region. This collapse would represent a 35% loss from the altcoin’s current position of $1.53.
If Cardano price manages to stay above $1.40, there are also chances for buyers to stop the decline and increase ADA by 20%. In this bullish scenario as well, the probability of a retracement from $1.68 to $1.79 is high. A daily close above $1.79 will mark the potential start of a new uptrend. A rise above $2 will invalidate the bearish thesis for ADA.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.