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Cardano (ADA), the 10th-largest cryptocurrency by market capitalization, is under pressure as the broader crypto market continues to decline. The altcoin has dropped below a major technical level, indicating a potential deeper bearish trend if sentiment does not shift soon.
Cardano has slipped below the daily Simple Moving Average (SMA) 50 at $0.669, a commonly watched short-to-medium-term trend indicator, as it enters the third consecutive day of decline since May 3.
After falling below the daily SMA 50 in early March, Cardano returned above it in late April. The price remained above this key level in the days that followed, as bears and bulls fought for control, with the bulls refusing to surrender ground despite bears' intense efforts. Cardano has only had three out of 11 days in the green since April 24.
Cardano's consolidation above the daily SMA 50, however, resolved in favor of the bears when it dropped beneath it on May 5, and the ADA price has been below it since.
What's next for ADA price?
At press time, ADA was down 2.05% in the last 24 hours to $0.649 and down 8.15% weekly, reflecting the drop in the crypto market, which resulted in $207 million in crypto liquidations in the last 24 hours, per CoinCoinGlass data.
The larger cryptocurrency market fell as investors awaited the start of the Fed's policy meeting on Tuesday and Wednesday, with a 4.4% chance of the central bank decreasing rates predicted.
Going forward, the bulls might need to reclaim the 50-day SMA to regain momentum. If this occurs, ADA may continue in a consolidation phase between its daily moving averages of 50 and 200, at $0.669 and $0.779, respectively, until the next major move. ADA may hit $1 next if it breaks decisively above the daily SMA 50.
However, if market weakness persists, ADA may experience additional losses. According to Ali, a crypto analyst, Cardano was rejected at the top of its descending channel, potentially setting up a move toward $0.63, or even $0.54 if pressure persists.
Vladislav Sopov