The Cardano price surged as it broke through a critical resistance trendline on its chart, a few days ago. However, the bullish momentum was short-lived, and ADA has since lost 0.5% of its value on the daily chart. The past week saw a significant depreciation of 14% in ADA’s value, with demand and accumulation both falling.

As Bitcoin retraces on its chart, most altcoins have followed the same price direction. The technical outlook of the altcoin has also sided with the bears.

For Cardano to regain momentum, buying strength needs to pick up over the next trading sessions. However, another push from the sellers can potentially cause ADA to lose its local support level, leading to a considerable fall in prices.

Cardano has also formed a v-shaped top reversal pattern, indicating a decline in demand over the last trading sessions. The market capitalization of Cardano has fallen, suggesting increased sell orders at the time of writing.

(by anushsamal)