• Cardano (ADA) has dropped 4.35%, approaching key support levels that could trigger further declines if breached.
• Cardano’s bearish momentum suggests a potential fall to $0.60 or lower if selling pressure continues.

Cardano (ADA) is facing intense selling pressure, with its price dropping 6% over the past 24 hours. This sharp decline has pushed ADA to a critical support level, raising concerns about a potential breakdown. As the broader crypto market turns bearish, is ADA heading for a deeper correction, or will history repeat itself with a surprise bounce?

Bearish Signals: ADA Struggles Below Key Support

Over the past week, ADA has been consolidating between $0.69 and $0.75, but bearish sentiment is now threatening to push it below this range. Currently trading around $0.695, the asset has fallen below the 200 Exponential Moving Average (EMA) on the daily chart, a historically bearish indicator.

If ADA fails to hold the $0.69 level, technical analysis suggests a possible 9% drop to $0.64 in the coming days. Market-wide weakness, led by Bitcoin (BTC) and Ethereum (ETH), further fuels this bearish outlook.

Will History Repeat Itself?

Historically, ADA has bounced back whenever it hit the lower boundary of its consolidation range. However, this time, sentiment appears overwhelmingly negative, making a recovery less certain. With increased bearish pressure and market volatility, Cardano holders are bracing for more downside.

Trader Sentiment: Bears Take Control

On-chain data from Coinglass indicates that traders are aggressively shorting ADA. There are $11.15 million worth of short positions stacked at $0.715, while bulls have built $6.51 million in long positions at $0.687. The imbalance suggests that bears are currently in control, increasing the risk of further losses.

Cardano at a Crucial Crossroad

While ADA is at a crucial decision point, its price action in the next few days will determine its direction. If it fails to reclaim higher levels, a drop to $0.64 seems likely. However, an unexpected surge in buying pressure could trigger a short squeeze, offering a potential rebound opportunity. Traders should watch the $0.69 level closely as the battle between bulls and bears intensifies.