Cardano faces downward pressure after rejection at crucial resistance level

Cardano (ADA) is experiencing downward pressure on its price trajectory after failing to break above the upper boundary of a descending channel, as per expert Ali. The rejection at this resistance level indicates that ADA may continue its ongoing bearish trend.

Ali suggests that if the current selling pressure persists, ADA’s price could drop as low as $0.63 and possibly even further to $0.54. These price levels correspond to the lower range of the descending channel and a crucial Fibonacci retracement level. The broader altcoin market is also facing weakness due to uncertainties in the macroeconomic landscape and Bitcoin consolidating its position, affecting investor sentiment negatively.

Traders are advised to closely follow the support levels at $0.63 and $0.54. A breach below these levels could signal further downward movement in ADA’s price. Conversely, a breakout beyond the descending channel might challenge the prevailing trend and potentially reverse the short-term bearish momentum.

Overall, the rejection at the key resistance level for Cardano and the subsequent failure to break above the descending channel’s upper boundary indicate that ADA is currently under bearish pressure. If the selling pressure continues, ADA might witness a significant decline in its price, with potential targets set at $0.63 and $0.54. At the same time, closely monitoring the support levels and any potential breakouts is crucial for traders navigating the current market conditions.