ADA Slides 12.38% as Inverted V-Pattern Highlights $0.679 Support Battle

ADA, the native token of Cardano, has recently formed an inverted V-pattern on its daily chart, signaling weakening bullish momentum and increasing bearish pressure. The price has dropped near $0.679, a key confluence support level that aligns with the 50-day Simple Moving Average. This level has historically acted as a base for accumulation, making it a crucial price floor for the short-term trend of ADA [1].

The technical structure suggests buyer exhaustion, particularly as resistance at the 9-day Exponential Moving Average (EMA) of $0.757 is capping any near-term upside movement. This resistance is critical for bulls to reclaim in order to invalidate the bearish formation and regain control of the trend [1].

Trading volume has also remained weak, further undermining the chances of a bullish recovery. The declining interest from buyers, reflected in weaker green candles and stronger red volume bars, indicates a lack of conviction in upward moves. Unless buyers mount a strong defense to protect the $0.679 support and push the price above the EMA, the bearish pressure is likely to intensify [1].

Currently trading at $0.728 with a 2.70% gain over the last 24 hours, ADA has seen a significant 12.38% drop over the past seven days. This price action highlights the ongoing battle between buyers and sellers near a critical support region. A failure to hold the $0.679 level could accelerate a larger correction, potentially dragging the price toward the $0.62 range and confirming a breakdown from the recent rally [1].

Traders are advised to closely monitor the $0.679 support zone, as a strong reaction here could determine the near-term direction of ADA. A break below this level would likely shift momentum in favor of the bears, while a successful rebound may offer temporary relief and provide a chance for a consolidation phase.

Source: [1] Cardano Forms Inverted V Pattern as ADA Eyes $0.679 Support Retest (https://coinmarketcap.com/community/articles/688fc0e0b3afd664ab382f35/)