Cardano Plummets 10% Amidst Crypto Market Turmoil

Cardano, the fifth-largest cryptocurrency by market capitalization, has experienced a significant drop in value, falling by approximately 10% in a bearish trading environment. This decline comes amidst a broader market downturn, with the global cryptocurrency market witnessing over $613 million in liquidations within 24 hours.

The Cardano (ADA) token has plummeted by more than 6% in a single day, breaching the $3 mark and creating a strong bearish sentiment. This price drop has raised concerns about the token's ability to maintain its support levels in the coming days. Bitcoin's struggle to stay above the $100k mark has also put pressure on ADA, as investors seek safer havens during market volatility.

Over the past week, Cardano has dropped by around 10%, reinforcing its bearish trend and signaling a challenging week ahead for traders. This decline has broken a key support level, increasing concerns about the token's future trajectory. However, some analysts remain hopeful that the support trendline within the triangle pattern may still hold, potentially leading to a bullish reversal.

Technical indicators suggest a clear bearish sentiment surrounding Cardano. The Moving Average Convergence Divergence (MACD) chart shows a steady increase in red histograms, indicating that selling pressure is outpacing buying interest. Additionally, the MACD averages continue to display a bearish convergence, amplifying investors' concerns. The Simple Moving Average (SMA) indicator has consistently acted as resistance, preventing ADA from gaining upward momentum. A sharp downward curve in the daily chart suggests that the token is likely to remain bearish this week, with traders remaining cautious and closely monitoring key support levels.

For Cardano to recover, buyers must regain control and push the price back above $3. If momentum intensifies, a strong bullish move could even help ADA test the $3.50 resistance level. However, this remains uncertain given the prevailing market conditions and bearish sentiment. On the other hand, if selling pressure continues, Cardano risks breaking its $2.75 support level and plunging further. If bears dominate the crypto space, the next support level at $2.50 could be tested. With the broader market also facing challenges, Cardano's short-term future hangs in the balance.