Cardano (ADA) price is desperately holding on to the $0.35 support amid attempts to push the altcoin further down the charts. Despite this, ADA is struggling to generate the momentum needed to reverse its downward trend.
This analysis examines the challenges facing ADA and whether support can withstand increasing bearish pressure.
Cardano faces an uncertain path ahead
In the early days of October, Cardanoâs price plummeted to $0.30. After reaching $0.40 a few days earlier, ADA, like other cryptocurrencies, began to decline. The downward trend raised concerns about a possible return to the $0.30 level.
However, ADA has so far managed to remain above this point, with bulls defending the $0.35 support. Despite this resilience, the Exponential Moving Average (EMA) indicates that Cardano remains vulnerable to bearish trends.
The EMA measures the direction of the trend and uses specific crossovers to determine whether the price may move in an upward or downward direction. When the longer EMA crosses above the shorter one, the trend is bearish. Conversely, if the shorter EMA is above the longer one, the trend is bullish.
Read more: How to Buy Cardano (ADA): Everything You Need to Know
Cardano Daily Price Analysis. Source: TradingView
The 20 (blue) and 50 (yellow) EMAs have almost converged, signaling a critical juncture for Cardanoâs price. However, with the price below both indicators, the likelihood of a bearish trend is strengthening.
The Average Directional Index (ADX), a key tool for measuring trend strength, points in the same direction. When the ADX crosses 25, it suggests a strong directional move. However, a reading below this level indicates weakness. For ADA, the current ADX is at 18.86, suggesting that the recent upward movement does not have the strength to persist.
Cardano Average Directional Index. Source: TradingView
ADA Price Prediction: Bearish Pressure Mounts
A closer look at the daily chart shows that ADA may face resistance at $0.36 in its bid to move higher. If that happens and the cryptocurrency fails to break above this region, the price may pull back, and the uptrend may be invalidated.
If this occurs, ADA price could fall below the $0.35 support, and the next target could be $0.31. Reaching $0.31 could put the token at risk of another downward trend, especially if the overall market condition does not improve.
Read more: How to make money with cryptocurrencies
Cardano Daily Price Analysis. Source: TradingView
However, Cardano may resist falling that much if the price flips the 20 and 50 EMAs. In such a scenario, the trend would have turned bullish, leading ADA to reach $0.40 and potentially $0.48 in the medium term.
The post Cardano (ADA) Holds Support at $0.35, but Recovery Remains Weak appeared first on BeInCrypto.
