Key takeaways
- Cardano’s ADA is the worst performer among the top 10 cryptocurrencies this week, down 5%.
- ADA could retest the $0.5111 low if the bearish trend continues.
ADA underperforms despite market recovery
ADA, the native coin of the Cardano blockchain, is the worst performer among the top 10 cryptocurrencies by market cap so far this week. The coin has lost nearly 6% of its value in the last seven days and looks set to dip further over the next few hours or days.
At press time, the price of ADA stands at $0.5662, down 2% in the last 24 hours. The bearish performance comes despite Bitcoin, Ether, and other major cryptocurrencies staging a recovery following last weekend’s dump.
The broader crypto market added nearly $200 billion to its market cap since Monday, with Bitcoin hitting the $108k level. However, ADA is yet to embark on a significant recovery, with the price action still bearish.
ADA to retest the $0.5111 low with bears still in control
The ADA/USD 4-hour chart is bearish and efficient, indicating a strong bearish bias on higher and lower timeframes. The technical indicators are also negative, showing that sellers are currently in control.
The MACD line has dropped into the negative territory while the RSI of 44 shows selling pressure. Both indicators are signs that ADA is currently bearish and could face further downward movements in the near term.
With the sellers navigating the ADA/USD pair, ADA could test the $0.5111 low soon. In the event of an extended bearish run, ADA will likely drop to the $0.4590 support level for the first time since November 2024.
However, the broader market is bullish, and this could rub off on ADA. If that happens, ADA could retest the previous week’s high of $0.6580. It would take a massive rally for ADA to surge towards the monthly high price of $0.7500.
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