**Cardano (ADA) Faces a 10% Drop Within a Wedge Pattern: Is a Slide to $0.50 on the Horizon?**
As Bitcoin dips below the $90,000 threshold for the first time in a month, Cardano has also taken a hit, currently trading at $0.65. Following an overnight decline of 10.05%, the bearish trend persists, with an intraday drop of 5.42%. With growing concerns about a potential fall below the $0.65 support level, bearish sentiment surrounding ADA’s price trajectory is intensifying. Could this lead to a further decline for Cardano down to $0.50?
**Cardano Price Breakdown: Bearish Pressure Intensifies**
The daily chart for ADA indicates a failure to break above the 20-day EMA line, resulting in an overhead rejection that has contributed to the current downturn. After reversing from the 50% Fibonacci level at $0.7746, Cardano is now testing its strength at the 38.20% Fibonacci level. The recent decline has breached the 200-day EMA line at $0.7289, and it appears poised to test the local support trendline. Additionally, the 50-day and 100-day EMA lines are nearing a negative crossover, while the Chaikin Money Flow Index has turned negative due to the recent crash. These technical indicators suggest a significant plunge may be on the horizon.
**Cardano Funding Rate Signals Volatile Market Sentiment**
In light of the increased selling pressure, the Cardano funding rate has seen considerable fluctuations, currently sitting at 0.0045%. Open interest has also decreased by 15%, now totaling $544.94 million. The long-to-short ratio for Cardano remains at 0.9216, while Binance traders exhibit a more optimistic outlook with a ratio of 2.73, indicating a slight sense of hope among them for Cardano’s future.
**Cardano ETF Proposal – Could This Spark a Recovery?**
Short-term optimism among crypto traders is bolstered by the recent acknowledgment from the United States Securities and Exchange Commission (SEC) regarding 19b-4 filings to list a Cardano ETF. NYSE Arca, a subsidiary of the NYSE Group, has submitted this proposal, seeking approval to list and trade Grayscale’s Cardano Trust shares under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares).
**Will Cardano Drop to $0.50 or Rebound?**
As the broader market grapples with a significant downturn, a decline to the support trendline near the psychological $0.60 mark seems likely. However, if the market stabilizes, the renewed optimism surrounding the SEC’s acknowledgment of Cardano’s ETF proposal could pave the way for a bullish reversal within the falling wedge pattern. According to Fibonacci levels, the critical support for Cardano now rests at the 23.60% Fibonacci retracement level at $0.53. On the bullish side, the potential resistance for a trendline breakout rally is identified at the 50% Fibonacci level of $0.7746.
