Cardano’s reversal from 23.6% level can inflict drawdown towards this range

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] recovery over the last nine days tested the 23.6% and the 38.2% Fibonacci resistance levels. However, the recent liquidations have pulled ADA below its 20 EMA (red) and the 50 EMA (cyan) over the past day.

Buyers are now striving to defend the $0.48-support by rejecting lower prices. A continued revival could find barriers at the 23.6% Fibonacci level in the $0.49-zone. At press time, ADA was trading at $0.4881, down by 2.48% in the last 24 hours.

Source: TradingView, ADA/USDT

The altcoin’s previous rally traversed above the 20/50 EMA. ADA registered a nearly 25% ROI (from 19 June low to 26 June high).

With the $0.52-level constricting bullish rallies for over two weeks, the expected reversal from the 38.2% level provoked a nearly 10% drop in the last two days.

After an evening star candlestick setup, the sellers propelled a downswing. As a result, over the last day, ADA saw a breakdown from its rising wedge-like structure in the four-hour timeframe.

Now, the rejection of lower prices at the immediate support has inflicted a bullish hammer. But with the broader trend still under bearish command, ADA could face a barrier in the $0.49 zone.

A strong selling move from this range can pull ADA to retest the $0.47-$0.48 range. The near-term EMAs and the $0.5-$0.52 range could curb the buying pressure should a bearish invalidation occur.

Source: TradingView, ADA/USDT

The Relative Strength Index (RSI) took a fairly neutral stance while aiming to test its equilibrium. Any reversal from the midline could reaffirm the bearish edge in the current market dynamics.

The recent higher troughs on