The Cardano price continues to face significant downward pressure, with its bearish structure showing no signs of abating. This sustained selling pressure increases the risk of a breakdown towards the yearly low of $0.27, potentially even falling below this mark. To understand the current state of Cardano’s price, it’s essential to examine the technical points that are driving this trend.
Technical Analysis of Cardano Price
Cardano is characterized by consecutive lower highs and lower lows, a clear indication of a bearish market structure. The failure to recapture the control point and the low of the value area further reinforces this bearish outlook. The downside risk remains elevated, with the yearly low of $0.27 being a critical level that could be tested if the bearish pressure persists.
Key Factors Influencing Cardano’s Price
The bearish market structure, defined by lower highs and lower lows, is a significant factor influencing Cardano’s price. Repeated bearish retests at high timeframe resistance confirm the weakness in the market. The failure to recover value increases the risk of a move towards or below $0.27. Understanding these technical points is crucial for predicting the future price development of Cardano.
ADAUSDT (1D) chart, source: TradingView
Cardano’s current price behavior reflects a market struggling to find demand amid ongoing selling pressure. The defining feature of the ADA chart is the continuation of a bearish market structure where every rally attempt has resulted in a lower high. This pattern suggests that buyers are unable to generate enough momentum to challenge sellers at key resistance levels. High timeframe resistance zones have been repeatedly tested and rejected, reinforcing the overall downtrend.
Volume Profile and Price Development
From a volume profile perspective, Cardano has been unable to recapture the Point of Control (POC), a level that represents the area with the highest trading volume within the recent range. Trading below POC suggests the market is operating below fair value, a condition that often favors a continuation of lower values unless buyers can force acceptance back above that level. The Value Area Low (VAL) is another critical reference point, and as long as the price remains below this level, the downside risk remains elevated.
The yearly low of $0.27 is now the key bearish level. This area has not seen significant recovery since its creation, making it a natural price magnet in times of sustained weakness. Markets often resort to such levels to test whether demand still exists, especially if the bearish structure remains intact. If ADA fails to reclaim the POC and continues to trade below the low of the Value Area, the probability of forming a new annual low increases significantly.
Future Price Development Expectations
As long as Cardano remains below the control point and fails to recapture the low of the value range, downside risk remains prevalent. Continued weakness increases the likelihood of a test of the yearly low of $0.27, with the possibility of a new yearly low if bearish pressure continues. A shift in trend requires a clear break in the bearish structure and a return above key resistance levels. For the latest updates and detailed analysis on Cardano and other cryptocurrencies, visit https://crypto.news/cardano-price-sinks-yearly-bearish-pressure-persists/
