Cardano(ADA) drops 10%... If it breaks below the $0.40 support level or drops to $0.35

Cardano(ADA) prices have plummeted over 10% in 24 hours, facing short-term downward pressure. Some forecasts suggest that if the support line on the chart is broken, a larger decline may occur in the future.

According to data from the cryptocurrency analysis platform CoinStats, as of the 11th, ADA is trading at $0.4161 (approximately 612 KRW), down more than 10% from the previous trading day. The short-term downtrend continues, and bearish signals are also detected in technical indicators. The hourly K-line chart shows support at $0.4117 (about 606 KRW), but since most of the daily average true range(ATR) has been expended, analysts believe the possibility of a sharp rebound in the short term is low.

If there is no rebound before the close of today, the price may further decline to around $0.40 (approximately 589 KRW). Of particular note is the support level at $0.4091 (about 602 KRW) on the medium to long-term charts. If this level is broken, the accumulated selling pressure in the market could be released, and the downtrend may continue into the $0.37~$0.40 (544~589 KRW) range.

Another concern is the formation of an “inverted shadow” on the candlestick chart. Although there are still several days before the weekly chart closes, if the current trend continues, it is not ruled out that the price may test $0.35 (about 515 KRW) alongside a major support level collapse.

This decline is interpreted not as an issue specific to ADA itself but as a response to the overall market weakness. Since most major altcoins are showing similar downward trends, some observations suggest that the confirmation of support levels may be prolonged rather than resulting in a short-term rebound.

Article summary by TokenPost.ai

🔎 Market interpretation

ADA is trading near a short-term technical support line; if this main support is broken, it could crash to $0.35. Analysts see this as a reflection of the overall bearish sentiment in the market.

💡 Strategy highlights

Effective short-term trading strategies using the balancing moving average and the daily average true range(ATR). Rather than focusing on rebounds, more attention should be paid to support zones during declines, and entry timing should be adjusted accordingly.

📘 Terminology explanation

• ATR(Average True Range): A measure of market volatility, with higher values indicating larger price fluctuations

• Support line: A price level where prices tend to stop falling and bounce back during a decline

TP AI Notes

This article uses a language model based on TokenPost.ai for summarization. The main content of the text may be omitted or may differ from the facts.