Crypto analyst Sssebi warns that Cardano (ADA) prices might face further downward pressure unless the token breaks above the $1.00 mark with strong trading volume. In a tweet post, the analyst emphasized that a trend reversal would require substantial buying momentum to confirm a sustainable upward movement.
ADA’s Technical Chart Shows Mixed Signals
The price chart analysis reveals multiple symmetrical triangle breakouts throughout ADA’s recent price action. A notable triangle formation near the $1.00 level broke to the downside, suggesting increased selling pressure.
$ADA needs to go above $1 to confirm the trend reversal with big volume that shows that the move is over.Until then, more downside could be in store. https://t.co/CG4IlmFnHP pic.twitter.com/xYZPyZFHTf
— Sssebi (@Av_Sebastian) November 26, 2024
The token found support at $0.90, where traders continue to monitor price consolidation patterns. The long-term trend maintains a bullish stance with the 200-period Simple Moving Average (SMA) positioned at $0.56.
Besides, this level serves as a foundation for the broader market structure. Trading volume remains modest during current price movements, indicating limited market participation.
Support and Resistance Levels Guide Price Action
ADA maintains several support zones, with $0.90 acting as an immediate buffer against further declines. The $0.80 mark presents a stronger support level, marked by previous price reactions. The 200-period SMA at $0.56 establishes a final defense line for bulls.
On the resistance side, the $1.00 threshold stands as both a psychological and technical barrier. The price previously struggled at the $1.20 zone, creating an upper resistance boundary. These levels shape the token’s trading range and potential breakout zones.
Read also: Fantom (FTM) Price Pumps: ‘There’s a Lot to Like,’ Says Elite Crypto Analyst
Market Momentum and Volume Analysis
The Relative Strength Index (RSI) hovers around 52, pointing to neutral market momentum. A break below the 50-mark on the RSI could reinforce bearish sentiment.
Current trading patterns show lower highs forming on shorter timeframes, while the mid-term outlook remains uncertain following rejection at $1.00. However, at publication, ADA has risen over the past day by 3.59%. It trades at $0.973065.
The analyst’s assessment aligns with technical indicators suggesting cautious trading conditions. The combination of price action, volume analysis, and momentum readings paint a picture of market indecision, warranting close observation of key price levels for potential directional moves.
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