Cardano (ADA) Suffers Brutal Rejection, DXY Kills Momentum in Crypto Markets
After the risk aversion trend appears, the market is in a dangerous state.
Cardano has encountered a harsh rejection at a key technical level, which suggests potential challenges ahead for the digital asset. The 26-day exponential moving average (EMA), which is often considered a minor support structure for consolidating assets, has proven to be an insurmountable obstacle for ADA’s price. This level, which is often a litmus test for short-term market sentiment, highlights a bearish stance as ADA has failed to gain ground.
The price chart shows ADA struggling to maintain upward momentum, with a notable rejection observed at the 26 EMA, which is priced at around $0.5478. This level of resistance not only halted the rise, but also represented a more severe resistance than previously expected. Since the 26 EMA is not usually characterized by such significant price action, the rejection at this threshold is particularly telling. Immediate support for ADA currently lies around $0.4763, a level that could serve as a base for any potential rebound. However, given the strength of the recent rejection, the asset’s price is more likely to test stronger support at $0.4234, which is located around the 200-day moving average, a key long-term indicator that often acts as an important psychological and technical support level.
Digital Assets Lose to the Dollar The U.S. Dollar Index, which measures the strength of the greenback against a basket of six major currencies, has recently surged, sparking concerns across the cryptocurrency market. Unchanged interest rates and general risk aversion in the market have pushed the dollar index to new highs. This rise is a bearish sign for cryptocurrencies, indicating that digital assets may face a difficult road ahead.
From a technical perspective, the US Dollar Index is showing strong bullish momentum. The index has broken above the key resistance level of 103.5, which is now acting as support, indicating a strong uptrend. The next resistance is located at the recent peak near 104.5, which, if broken, could signal a continuation of the move towards higher levels not seen in recent history. A stronger dollar typically leads to a decline in investor risk appetite. This shift results in an outflow of funds from riskier assets such as cryptocurrencies and an inflow into the perceived relative safety of the U.S. dollar.
