Cardano could experience additional price declines following a recent trendline failure, potentially dropping to $0.62. However, a support level around $0.80 might prevent further losses.

Cardano's Bearish Outlook

Cardano (ADA) faces renewed bearish pressure following a recent trendline rejection, with analyst Dan Gambardello warning of a potential correction toward $0.62. This decline is attributed to weak momentum and compares unfavorably to historical patterns, suggesting possible price manipulation. While a deeper fall isn’t guaranteed, the near-term outlook is cautious.

Key Support and Resistance Levels

Fibonacci retracement levels at $0.808 and $0.785, along with the 20-week and 50-week moving averages, are identified as potential support zones that may limit ADA's downside. Traders should monitor these levels and watch volume activity to gauge the strength of potential reversals. The level of $0.80 is a critical point to observe.

Trading Strategies and Risks

Gambardello suggests traders confirm the trendline rejection across various timeframes and define risk controls. A possible downside target is near $0.62, contingent on sustained bearish momentum and failure to hold key support levels. COINOTAG recommends cautious trading, prioritising risk management and observing market behaviour around significant technical points.

Future Monitoring

COINOTAG will continue to monitor Cardano's price action and update analyses as market conditions evolve, focusing on volume and reactions around support and resistance levels. The current outlook indicates a need for close observation and adaptive trading strategies.