ADA – Downtrend Dominates, Risk of Deeper PullbackHello everyone,
On the chart, the downtrend remains clearly intact, with a persistent sequence of lower highs and lower lows extending from October to the present. Price is trading entirely below EMA34 and EMA89, both of which are sharply sloping downward. This confirms that sellers continue to control the market, with no meaningful signs of exhaustion so far.
Throughout November and December, all rebound attempts have been weak, short-lived, and repeatedly rejected around the EMA34 near the 0.45 USD area. This behavior suggests that buying pressure is purely technical in nature and insufficient to form a reversal structure. At the moment, ADA is hovering around the nearby support zone of 0.37–0.39 USD. However, the current D1 candle structure — small bodies, short lower wicks, and declining volume — indicates fading momentum, a pattern that often precedes a breakdown of support.
From an EMA perspective, the widening gap between price and EMA34 (0.452) as well as EMA89 (0.560) further confirms that the downtrend is expanding rather than contracting. To shift the market’s bias, ADA would need at least a daily close above 0.45 USD. At this stage, there are no early signals supporting such a scenario. Volume has continued to dry up over recent weeks and is concentrated mainly on bearish candles, implying a lack of fresh inflows, while sellers still require relatively little pressure to push prices lower.
Based on the current technical picture, the highest-probability scenario remains a breakdown below the 0.37–0.38 support zone, followed by an extension of the decline toward deeper support around 0.30–0.33 USD. This area represents a significant liquidity zone that previously acted as a major support, where price could eventually see a technical bounce or begin forming a new accumulation base. Until ADA approaches that region, there is still insufficient evidence to expect a genuine trend reversal.
Wishing you all a successful trading day!
