With Cardano [ADA] breaching $0.4565, bears could eye this level next

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

Cardano’s [ADA] recent drop from the $0.63-level shaped into a down-channel retracement in the daily timeframe. The 50 EMA (cyan) joined hands with the horizontal resistance to propel this downfall.

The broader trajectory would likely favor the sellers in the coming days. Unless the buyers come to the rescue at the immediate support level, ADA could see an extended decline before a strong revival.

At press time, ADA traded at $0.4522, up by nearly 1.51% in the last 24 hours.

Source: TradingView, ADA/USDT

As the price action fell below the 20 EMA, the immediate narrative for the altcoin took a bearish flip. The down-channel has shunned the recent bullish efforts to reclaim critical support levels.

Further, the price action now entered a tight phase as the gap between the lower and upper bands of Bollinger Bands (BB) decreases. After an extended squeeze, the alt would likely witness a high volatility phase in the coming days.

With the price action breaching the long-term $0.4565-support, the bears could eye for a close below the $0.43-level. In this case, potential targets would rest in the $0.401-zone. A sudden buying resurgence above the Point of Control (POC, red) could disregard the bearish tendencies. Here, the buyers’ efforts could be short-lived by the 50 EMA by the sellers.  

Source: TradingView, ADA/USDT

The Relative Strength Index (RSI) took a relatively bearish stance while retesting the 39-mark support. A breach below this support could aid the sellers in finding fresher lows.

Further, the Chaikin Money Flow (CMF) saw a close above the zero-mark and affirmed ease in the selling vigor.