Key takeaways
- Cardano’s ADA is the weakest performer among the top 10 cryptocurrencies, losing 8% of its value over the past 24 hours.
- The token could climb back above $1 if it successfully retests the $0.84 support level.
ADA retests $0.84 amid bearish market conditions
The cryptocurrency market has turned bearish since the start of the week, and Cardano’s ADA has lagged the top ten tokens by market capitalization. ADA fell 8% over the past 24 hours and briefly touched the $0.84 level.
This downward move saw ADA retest the $0.84 trendline support and may be poised for another upward move after briefly breaking above the psychological $1 mark last week. ADA’s weakness has taken place alongside a broader market sell-off, with Bitcoin briefly dipping below $113,000 earlier in the day.
Ethereum also slipped below $4,200, while XRP and Solana failed to hold above $3 and $200, respectively.
ADA can reach $1 if $0.84 support holds
Despite the 8% decline in the last 24 hours, the ADA/USD 4-hour chart retains an overall bullish structure. However, technical indicators have turned bearish, indicating sellers currently have the upper hand.
A 44 reading on the RSI suggests ADA could drift toward oversold territory if buyers do not regain control. The MACD lines have also crossed into bearish territory.
At the time of writing, ADA trades around $0.8491 while the $0.84 support level remains intact. If this support continues to hold, ADA could test the first major resistance at $0.9570 before attempting to reclaim last week’s high at $1.0198.
Conversely, a failure to sustain the $0.84 support could break the trendline and push ADA down to the next major support at $0.7685. A prolonged bearish move could send ADA to retest the August low near $0.6820.