Is a Drop Below $1 Imminent? | Airdrop Alert Pro

Cardano (ADA) surged 25% over the past week, breaking above a key resistance level – the upper line of the descending triangle pattern. The bullish breakout initially sparked optimism that the market was poised to return to two-year highs of $1.32.

However, the rally has since stalled. Buying pressure has weakened in the past two days, causing ADA prices to consolidate within a narrow range.

Traders wait and see, Cardano loses momentum

Last week, Cardano’s rally pushed its price above the upper limit of the bearish descending triangle pattern it had been trading in for the past few weeks. bein encryption report The bullish breakout initially sparked optimism as traders set their sights on the possibility of regaining the two-year high of $1.32.

However, as buying pressure weakens, ADA prices are integrated It has fluctuated within a narrow range in the past two days. It encountered resistance at $1.11 and found support at $1.05.

When the price of an asset trades within a tight range, it signals a period of indecision in the market, with buyers and sellers evenly matched. Typically, consolidation occurs before a large price move as traders wait for a breakout or breakdown to signal the next trend direction. ADA’s price may give back some of its recent gains as technical indicators point to a sharp decline in buying activity.

For example, data on the Aron ascending line falling supports this bearish outlook. As of this writing, the indicator has been trending downward since the beginning of the price consolidation.

The Aroon indicator measures the strength and direction of a trend by analyzing the time since an asset’s recent high (Aroon Up) and low (Aroon Down). When the Aroon Ascending Line falls, the asset’s recent highs are becoming less frequent, indicating that bullish momentum is waning or that the trend may be shifting to a downtrend.

Furthermore, ADA’s negative weighting sentiment reflects the growing bearish bias against the altcoin. As of this writing, the value is -0.71.

When an asset’s weighted sentiment is negative, it indicates that overall market sentiment, as measured by social data, is bearish. This suggests there is more pessimism than optimism among traders and investors, which could impact the asset’s price performance.

ADA Price Prediction: Bullish Breakout or Further Fall?

As of press time, ADA is trading at $1.08. The growing bearish bias towards the coin may pull it towards the $1.05 support zone. If the bulls fail to hold this level, the coin’s price may drop below the $1 mark and trade at $0.94.

On the other hand, if market sentiment shifts and turns bullish, Cardano price may break above the $1.11 resistance, It regained a two-year high of $1.32.