Cardano (ADA) Struggles Below $1.00: Can It Reclaim Key Resistance Levels?
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- Cardano fails to break $1.13 and trades below $1.00, diverging from Bitcoin’s bullish momentum.
- Realized losses have surged, reflecting heightened bearish sentiment among investors.
- ADA risks further decline to $0.85, but reclaiming $0.99 could set the stage for recovery.
Cardano (ADA) continues to struggle as it trades below the critical psychological support of $1.00. Despite Bitcoin’s upward trajectory, ADA faces mounting bearish pressure, raising concerns among investors about its ability to regain momentum. The cryptocurrency has been on a steady decline, failing to breach the $1.13 resistance level for weeks.
Cardano Investor Sentiment
Investor sentiment around Cardano remains bearish, as realized losses hit a two-month high. This trend indicates that sellers are exiting their positions at a loss, a sign of waning confidence in ADA’s near-term prospects.
Such realized losses often prompt a pause in market activity as investors reevaluate their strategies. The reduced trading volume could further delay ADA’s recovery, as traders wait for more definitive bullish signals before re-entering the market.
Adding to these challenges, Cardano’s correlation with Bitcoin has dropped to 0.40, signaling a decoupling from the broader market leader. Historically, such divergences have preceded corrections for ADA, as Bitcoin often serves as a stabilizing force for altcoins. This weakening correlation highlights Cardano’s current vulnerability to standalone volatility and raises concerns about its ability to recover independently.
Price Prediction: Testing Lower Supports or a Recovery?
Cardano is currently trading at $0.95, down nearly 10% over the past 24 hours. The altcoin remains below the $0.99 support level, signaling persistent selling pressure and weak market sentiment.
If the bearish momentum continues, ADA could decline further to test the $0.85 support level, a zone it nearly reached during the previous session. Breaking below this level would signal deeper losses and extend the bearish outlook.
Conversely, a rebound above $0.99 could provide the foundation for recovery. Reclaiming this level would enable ADA to target the $1.13 resistance, a key barrier it has failed to breach in recent weeks. Overcoming this resistance would invalidate the current bearish sentiment and renew investor confidence in Cardano’s potential for a turnaround.
