Cardano (ADA) Faces Bearish Trend with Potential Bottom at $0.41

• Cardano’s ADA, after a late 2023 surge, faces a 35% drop in early 2024 amid crypto market turbulence.
• ADA slipped below its 50-week moving average, with bearish signals like the RSI turning negative.
• A potential lifeline lies at $0.41, a historical support level.

The Cardano price uptrend that persisted through late 2023 has reversed into a punishing bear market to start the new year. After reaching its highest levels since 2021 in December, ADA has plunged by over 35% amid crypto sector turmoil that has shown no mercy for even well-constructed blockchain projects.

Now analysts debate how much deeper the capitulation will run before reaching significant long-term support that could spark the next meaningful rally. One widely followed expert highlights the $0.41 level as a plausible ADA bottom where buyers might finally gain some control.

Cardano recently bounced off its 50-week moving average but faced intense overhead selling pressure that drove it back beneath that dynamic support. Additional failed rally attempts have turned previously bullish momentum indicators like the relative strength index (RSI) decisively bearish.

The RSI recently breached 70 on its weekly chart, signaling the powerful 2021–early 2022 uptrend had likely ended. The momentum gauge now risks slipping below its midpoint, which would all but confirm a bear market is underway.

13% drop to $0.41 before a Cardano relief bounces

Some comfort comes from the looming horizontal support zone around $0.41 that previously provided stiff resistance during 2018’s bear trend. ADA dropping the estimated 13% required to reach that block could slow the bleeding and allow an overdue corrective bounce.

The Bulls will try to make a stand before a final capitulation toward the $0.35 mark comes into play. But bears have continuously overwhelmed any half-hearted lift-off attempts up to now.

Without a swift trend change fueled by broad-based altcoin buying interest, the path of least resistance continues to favor the ADA bears. Hardened holders feel confident in the project’s future but may have to endure intense pain before the next golden era potentially emerges.