Cardano (ADA) retreats below $2 as BTC and ETH battle downside pressure
ADA is showing a bearish outlook and an extension of recent losses, a scenario that could see bears breach support to retest prices near $1.50
Cardano has lost nearly 10% of its value over the past 24 hours, a downturn that has seen the fifth-ranked cryptocurrency risk further losses amid froth in the broader crypto market.
ADA is currently trading near $1.94 and looks likely to retest lower support levels, with market outlook for Bitcoin (BTC) and Ethereum (ETH) suggesting that bears remain very much interested in establishing new lows.
Cardano price outlook
ADA/USD has traded lower in the past two days after a breakdown from a symmetrical triangle. As the daily chart below shows, the pair was unable to hold above the triangle’s resistance line, with the upside capped by aggressive selling in the zone between the 20 EMA and 50 SMA.
The breakdown from the 20 EMA ($2.13) line found an anchor at the old horizontal line established in mid-August and retested on 21 September.
Bulls are trying to bounce off the support line near $1.91, but are facing it tough. The technical picture for Cardano suggests sellers hold the upper hand and could see new losses happen over the next few days.
We have the daily RSI wedged below the equilibrium point, while the curves of the moving averages are slopping to indicate the easier path lies on the downside. Key price levels to watch in case of another leg down would be the 38.2% Fibonacci retracement level ($1.82) and 23.6% Fib level ($1.52).
ADA/USD daily chart. Source: TradingView
On the upside, Cardano’s current outlook suggests a rebound should see fresh bids steady the ADA/USD pair as the coin looks to shake off the correction.
In this case, bulls need to keep prices above $1.90 (blue horizontal line), which should allow them to target the supply zone near the 50% Fib level ($2.07).
A breakout buoyed by fresh buying could then send ADA price towards the 61.8% Fibonacci retracement level ($2.31), with legitimate targets for its 2021 price prediction in the $2.5-$3 range.
