Cardano’s ADA token experienced a decline on Monday afternoon, trading at $0.6154 and dropping by 5.35% over the past 24 hours. The decline began with a sell-off around 22:00 UTC on June 16, causing the token to fall through multiple support levels. Despite a brief recovery attempt, the bearish trend persisted into midday on Tuesday.

This correction aligns with a broader trend of risk-off behavior in the digital asset market due to tense global macroeconomic conditions. Trade disputes and monetary tightening in major economies have created pressure on risk markets, leading to a drop in ADA and other large-cap tokens.

However, some technical analysts have observed potential indications of a reversal in ADA’s structure. A slight bounce from $0.622 to $0.626 formed a small upward-sloping channel earlier in the session, with price repeatedly testing the $0.624–$0.625 range. This area is now considered a potential pivot zone, although volume has decreased and volatility has lessened.

At present, ADA is trading slightly above its daily low, and bullish traders are hoping for stability between $0.615–$0.620. The direction of the next move may depend on whether this support zone holds and if market conditions improve.

Key Points from Technical Analysis:

– A significant decline began on June 16 at 22:00 UTC when ADA fell below the $0.650 support level on high volume.
– Multiple unsuccessful attempts to surpass $0.630 led to the creation of a new resistance band around $0.640.
– Lower highs were consistently formed during each bounce, confirming downward pressure.
– A support zone developed between $0.620 and $0.622 with increased volume.
– A descending channel formed with lower highs and lower lows.
– A temporary recovery from $0.622 to $0.626 established an upward-sloping micro channel with rising volume.
– Resistance was seen at $0.626, while the $0.624–$0.625 range acted as a pivot range with repeated tests.
– Recent candles showed reduced volatility and volume, indicating consolidation near local lows.

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