Cardano ’s Bullish Strength Fades as ADA Heads to YTD Low

Cardano (ADA) investors seem to be losing control in the context of the cryptocurrency market adjusting over the past week.

Technical indicators show that the buying side's presence in the ADA spot market is gradually decreasing, which could lead to a potential return to the year's lowest level of $0.50.

ADA's price decline increases as buying pressure depletes

ADA's Elder-Ray index, which measures the strength of buyers versus sellers, has shown a continuous decline in recent days, signaling a weakening of buying momentum. The daily ADA/USD chart revealed a gradual reduction in the size of chart bars forming this indicator, highlighting the decline in buyer strength.

The gradual reduction in Elder-Ray index bar size typically indicates the gap between buying and selling forces is narrowing. As buying pressure weakens and sellers begin to control, chart bars shrink. This is often an early warning sign of trend reversal or potential price decline.

This trend suggests that ADA buyers are gradually losing control, and a deeper correction may be occurring.

Moreover, ADA's Chaikin Money Flow (CMF) index is negative and has remained below the zero line since Monday. At the time of writing, this momentum indicator measuring money flow in and out of the asset is at -0.09.

Such a negative CMF indicates the asset is experiencing more selling pressure than buying pressure. This suggests a potential further price decline for ADA in the short term.

ADA Bulls fight to defend $0.66

Currently, ADA is trading at $0.69, above the support level formed at $0.66. If buying pressure continues to weaken, ADA may break below this support level and drop to the year's lowest point of $0.51.

Conversely, if demand for this altcoin increases, it will prevent the decline. If Cardano investors increase buying activity, the support level at $0.66 will be reinforced, pushing ADA's price up to $0.76.