- Cardano (ADA) accelerated the decline after a sharp move below $0.1300.
- The short-term picture implies that the bearish sentiments will prevail.
Cardano (ADA) lost over 1% of its value in a matter of minutes and the downside momentum is gaining traction. The coin broke below the local channel support of $0.1300 and tested $0.1279 amid growing bearish pressure. At the time of writing, ADA/USD is changing hands at %0.1282. The coin has lost over 2.6% since the start of the day, though it is still in the green zone on a day-to-day basis.
ADA/USD: Technical picture
On the intraday chart, ADA/USD moved below 1-hour SMA50 with the next support created by 1-hour SMA100 at $0.1266. A sustainable move below this area will worsen the short-term technical picture and allow for an extended decline towards $0.1230 (1-hour SMA200) and a psychological $0.1200.
On the upside, a return above $0.1300 will help to mitigate the immediate bearish pressure. The price will return inside the previous consolidation range and get a chance to retest the upper line of the 1-hour Bollinger Band at $0.1354 and Tuesday’s high of $0.1366.
However, considering the downward-looking RSI on the 1-hour chart, the bearish scenario looks more likely at this stage. The coin may retest the above-mentioned $0.1200 before new buyers pop in and initiate an upside correction.
ADA/USD 1-hour chart