Cardano (ADA) has recently experienced a significant price dip, falling below the crucial $1 threshold. This decline comes amid broader market weaknesses, contributing to a 12.39% decrease in Cardano’s value over the past 24 hours. As the price struggles to maintain its position among the top 10 cryptocurrencies, many investors are now wondering whether ADA will continue its downward trajectory or manage a recovery.

Cardano’s Struggles with Key Support Levels

Cardano’s drop below the $1 mark is notable not just because of its psychological significance, but also because it has triggered further concerns about a sustained bearish trend. As of now, ADA’s market capitalization has dipped to $34.94 billion, a stark contrast to the levels it maintained just a few weeks ago.

Analyzing the current price action on the 4-hour chart reveals that Cardano failed to hold the $1.117 resistance level after initially breaking above it. This failure, combined with the overall bearish market sentiment, triggered a sharp correction that resulted in the price sliding below the $1 level. The decline has caused many traders who were previously bullish on ADA to reevaluate their positions.

Key Technical Indicators and Support Zones

At present, Cardano is hovering just above the $0.991 mark, where the 100-EMA (Exponential Moving Average) is providing some support. The 100-EMA is often used by traders to identify trends, and its current position indicates that there is some demand for ADA at lower levels, which could potentially help stabilize the price temporarily.

Additionally, the 200-EMA, currently positioned at around $0.968, is another key level to watch. If the price continues its downward movement, the 200-EMA could offer support, acting as a price floor and potentially reversing the bearish trend. If Cardano can hold above this level, it may signal that the recent pullback is just a temporary setback.

However, the technical indicators suggest a weakening outlook. The 20-EMA, which had previously shown some promise as a short-term support, has begun to show a significant downward slope. If this trend continues, the 20-EMA could soon cross below the 50-EMA, signaling a bearish crossover. This could signal further selling pressure for ADA.

Furthermore, the 4-hour Relative Strength Index (RSI) is currently below the neutral mark, hinting at the potential for additional downward movement. While the RSI is not yet oversold, the lack of upward momentum indicates that sellers may have the upper hand in the short term.

Potential Price Targets and Market Volatility

Cardano’s price is at a crucial juncture below the $1 mark, and the coming days will be crucial in determining whether ADA can regain its bullish momentum or if a deeper correction is in store. The broader crypto market’s volatility continues to add uncertainty to ADA’s price trajectory.

If ADA manages a recovery, the first level of resistance will likely be the 20-EMA, currently sitting around $1.044. A recovery above this level could help the price push toward the $1.117 resistance, where the recent breakdown occurred. However, given the current market conditions, a significant resistance at these levels may delay any substantial price increase.

On the other hand, a continued bearish trend could target lower support levels, with the 200-EMA at $0.968 being the immediate support. Should the selling pressure intensify, the price could potentially retest the $0.94 level, a key horizontal support area.

Conclusion

At this point, Cardano is facing a critical test, as it struggles to maintain support above $1 amid a broader market downturn. While the technical indicators show a potential for price stabilization at key levels like the 100-EMA and 200-EMA, the risk of further declines remains high, especially if the market continues to show weakness.

Investors will need to monitor Cardano’s price action closely over the coming days. A failure to hold above the $0.94 and $0.968 support levels could signal further downside, but if the price can recover, ADA may be able to bounce back toward the $1.10 resistance zone. For now, the market remains uncertain, and Cardano’s next moves will depend heavily on both the crypto market’s broader trend and ADA’s ability to reclaim key support levels.