Although the crypto market is beginning to flash subtle signs of recovery following the recent market volatility, Cardano has reached a technical juncture as its price struggles below critical levels.
While the market is showing mixed price actions, popular crypto analyst Ali Martinez has shared data revealing that ADA is currently changing hands around $0.232, below its multi-year support level.
ADA eyes bearish monthly close
The market downside pressure has pulled ADA’s trading price below $0.247, which has served as its key support zone since 2021 as the asset has maintained a steady close above that level.
While historical data shows that $0.247 has acted as a lower boundary during previous market pullbacks, Cardano has gained attention after retracting below that level.
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Cardano’s price decline below such a critical level further positions it for a more bearish move. This has caused traders to worry whether ADA would recover above $0.247 before the month ends.
Although it is currently uncertain at what price Cardano would close the month, analysts noted that the asset will be headed for a further downside move if it closes the month below the support level.
Cardano price outlook
The analyst believes that Cardano could be on the verge of suffering deeper price losses if it doesn’t regain its support around that level. If this becomes the case, Cardano would need to form support around lesser price zones ranging between $0.113 and $0.051.
According to the analyst, these lower levels are viewed as potential areas where long-term investors may look to accumulate.
Although Cardano is currently providing a bearish outlook for the coming month, the analyst noted that whether ADA manages to reclaim its historical support or confirms a breakdown may help to predict its potential price moves in the months ahead.
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