ADA Could Drop Back To $0.64 Levels
Cardano (ADA) is currently trading below the key $1 mark and is down more than 16% in the past seven days. Yesterday’s price action created some uncertainty in the market. While there was a bounce at the $0.93 level, it was not strong enough to form a major V-shaped bounce. The market may make another low, in line with Bitcoin’s current trend. Today, ADA is showing a further downward trend, although the previous day’s lows have yet to be broken.
Reversal potential
The next low may be the last low, But without a break above resistance, it is difficult to confirm that a low has been reached. Currently, the price appears to be undergoing a corrective rebound, possibly a fifth wave of decline. If ADA falls below $0.83, this would suggest a fourth wave of continued greater volatility.
Possibility of bullish divergence
If ADA reaches oversold status on the 4-hour chart, a bullish divergence is possible. If a new low is formed but the RSI remains above 20.8-20.9, it could signal a bullish divergence and set the stage for a reversal. However, this is not guaranteed and the market will need to show specific price action to confirm this.
Key price levels to watch
A break above the $1 level could signal the end of the downtrend and the beginning of a new wave. If ADA breaks above $1.67, it would indicate that a significant low has been formed, whether it occurs now or after another low.
overall market sentiment
Within the broader altcoin market, ADA is tracking Bitcoin’s moves, with altcoin volatility increasing. Although Bitcoin is down around 1%, ADA remains above the key support level at $0.83, which is important for the current setup. Furthermore, sustaining above $0.64 will be crucial to sustain the overall uptrend that began in November.
