ADA forms inverted V-pattern as price drops near $0.679, a key confluence support with 50-day SMA.
Technical structure suggests buyer exhaustion as resistance at EMA-9 ($0.757) limits any near-term upside moves.
Trading volume is also weak, undermining the bullish chances of recovery unless buyers fight to protect the $0.679 and take charge of the trend once again
Cardano (ADA) has formed an inverted V reversal on its daily chart, indicating fading bullish strength as it nears critical support. With key technical zones under pressure, ADA’s near-term movement depends on bulls holding the $0.679 price floor.
Why ADA Price Action Signals Buyer Fatigue and Potential Reversal
Cardano’s recent trading behavior reveals a sharp peak near $0.97, followed by a swift correction forming an inverted V-shaped pattern. This structure frequently reflects market exhaustion, where initial bullish strength dissipates under rising sell-side pressure.
According to a post by @alphacryptosign, ADA’s technical outlook now hinges on a key support level near $0.679, aligning with its 50-day SMA. This level has historically served as a base for accumulation, making it critical for short-term trend direction.
Failure to hold this support could accelerate a larger correction, potentially dragging price toward the $0.62 range. This would confirm the breakdown from the recent rally, shifting momentum back in favor of bears.
What Bulls Must Do to Regain Control Above Resistance
The 9-day Exponential Moving Average, currently around $0.757, acts as immediate resistance for any bullish continuation. Price must convincingly reclaim this trend line to invalidate the bearish setup.
The volume analysis reveals reduced interest from buyers, as seen in declining green candles and stronger red volume bars. Without an uptick in demand, buyers may struggle to push price above resistance and sustain upward movement.
Bulls must act quickly to reclaim the EMA and defend the $0.679 support zone. If both conditions are unmet, further downside pressure appears likely in the short term.
When and Where ADA’s Next Move Could Develop
ADA trades at $0.728 with a 2.70% 24-hour gain but shows a 12.38% drop across the past seven days. The price action reflects uncertainty, as buyers and sellers battle near a critical support region.
As @alphacryptosign pointed out, traders should closely monitor this support zone. A strong reaction here could determine ADA’s near-term direction. A break below could shift momentum entirely, while a rebound may offer temporary relief.
