The ADA technical analysis shows an increase in selling spree momentum after a head and shoulder pattern fallout, teasing a drop to $0.38.

The ADA price action shows a power struggle at the crucial demand zone at $0.43 after a head and shoulder breakout. The bearish breakout of the $0.43 support level can lead to a downfall breaking the 52-week of $0.38. So, will the bearish breakout rally crash the Cardano under the $0.38 mark?
<h3>Key Points:</h3>
<ul>
 	<li style="font-weight: 400">The Cardano prices show a head and shoulder breakout. </li>
 	<li style="font-weight: 400">The fallout rally crosses under the $0.43 mark.</li>
 	<li style="font-weight: 400">The intraday trading volume in Cardano is $869 Million.</li>
</ul>
<img class="alignnone" src="https://s3.tradingview.com/snapshots/g/G3rQHsHl.png" alt="ADA/USD Price Chart" width="2047" height="1006" />

Source-<a href="https://www.tradingview.com/x/G3rQHsHl/">Tradingview</a>
<h2>ADA Technical Analysis</h2>
The ADA price action shows a power struggle at the $0.43 support level after failing to sustain above the 50-day EMA. The 7% drop in the Cardano market value results in a bearish engulfing candle leading to the head and shoulder pattern.

The spike in the intraday trading volume supports the bearish engulfing candle, increasing the possibility of a continued downtrend. Hence, the traders can find selling opportunities in the current market, speculating a downtrend.

A daily candle closing below the $0.4166 neckline support will accelerate the bearish momentum and trigger the aforementioned pattern. As a result, the extended downfall could possibly plunge to the $0.34 demand zone.

On a contrary note, if the coin buyers manage resistance trendline breakout, it will indicate the trader's sentiment from selling on rallies in flipped to buying on the dip. Thus, the potential rally may reach $0.67.
<h2>Technical Indicator</h2>
The daily RSI dives deeper into bearish territory, indicating the sellers are strengthening their grip over the coin. Moreover, the increasing gap between the MACD and signals shows sustained selling activity from traders.

Therefore, the technical indicators reflect growth in selling pressure. As a result, the ADA technical analysis supports a bearish viewpoint and suggests selling opportunities with the pattern breakdown.

Resistance levels- $0.5 and $0.57

Support levels-  $0.43 and $0.38

ADA Technical Analysis: Will ADA Avoid A Fall To $0.38?

The ADA technical analysis shows an increase in selling spree momentum after a head and shoulder pattern fallout, teasing a drop to $0.38.

Vikram is a technical analyst with several years of experience in the crypto market &amp; Indian Equity and F&amp;O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.

ADA Technical Analysis: Will ADA Avoid A Fall To $0.38?

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