Crypto
Home›Crypto›Market Structure›Cardano rebound hits resistance as bear-flag setup eye…
Cardano rebound hits resistance as bear-flag setup eyes deeper drop
ADA was near $0.196 and testing the 0.382 Fibonacci level and 100-day EMA, with a breakdown below support flagged as opening a move toward $0.139 and below $0.10.
Yahoo Finance highlights that Cardano’s ADA bounced more than 40% from late June lows near $0.139, rising toward $0.196 as of Aug. 10. The outlet says the rally may be vulnerable because it is developing within a bear flag structure, a pattern that typically appears after a sharp decline followed by an upward-sloping consolidation.
In the article’s technical read, ADA was trading near $0.196 on Aug. 10 and testing a cluster of resistance around the 0.382 Fibonacci retracement level at $0.1963 and the token’s 100-day EMA near the same area. The daily RSI was rising toward 64, but Yahoo Finance notes that rejection from current levels could steer ADA back toward the bear flag’s lower trendline near the 0.236 Fib level around $0.1744.
The piece also points to what happens if key support fails, saying losing that area would strengthen the bearish setup and expose the 0 Fib level near $0.1391, potentially returning the token toward its June bottom. It adds that measuring the height of the prior May-to-June decline projects a downside target around $0.0979, which would be roughly a 50% drop from current prices and would push ADA below the psychological $0.10 level.
On the weekly chart, Yahoo Finance says ADA has already broken below the lower trendline of a multi-year bear flag formed after the 2021 to 2022 collapse. The article states that this broader setup keeps a larger downside target near $0.078, about 60% below current prices, and notes ADA is trading below its 20-week EMA near $0.216.
It concludes that unless ADA decisively reclaims the 20-week EMA, the bounce may remain corrective, with continued weakness first dragging the token back toward recent lows before the larger bear-flag target near $0.08 comes into focus.