Why is the Cardano (ADA) Price Down Today

ADA crashed by 10% today as bears return.

Key Support levels: $0.90, $0.73

Key Resistance levels: $1, $1.3

1. Price Struggles at Key Support

Cardano is about to decide where it goes next. If the key support at 90 cents does not hold, then it will turn into a resistance and see the price fall lower towards 73 cents next. At that point, ADA will make a lower low which could indicate a prolonged correction has begun.

Chart by Tradingview

2. Momentum is Reversing

The volume is making lower highs, the price is making lower highs, and so does the RSI and MACD histogram. These are all bearish signals. It would be surprising to see the key support hold considering the above. However, until the 90 cents level breaks, it is too early to call it.

Chart by Tradingview

3. Impending Bearish Cross on Weekly Timeframe

A big warning sign is given by the weekly MACD which shows that a bearish cross is imminent. If so, that could be the start of a long correction that can see the price fall towards 73 cents or lower. This scenario is likely if the overall market enters a deep correction.

Chart by Tradingview

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