Crypto Crash: ADA Breaks Trend Line Support While BTC and ETH Bounce Off Key Levels

Cardano (ADA) has gone down by 9.4% in the past 24 hours and currently stands near the $0.6300 level after President Donald Trump signed an executive order (EO) that imposes high tariffs on goods imported from China and other commercial allies.

Most cryptocurrencies are bleeding out today. The CMC 100 Index – a benchmark that tracks the performance of the 100 most valuable digital assets – has gone down by nearly 6% in the past day.

ADA Could Lose Another 9%

Cardano has broken a key trend line support in the daily chart that had already served as an area of support once this year. This lower trend line has been forming since November last year, which increases its relevance from a technical standpoint.

Momentum indicators now favor a bearish outlook for ADA as the Relative Strength Index (RSI) sent a sell signal at the end of March.

In addition, the MACD’s histogram shows that negative momentum has been accelerating since yesterday. ADA could have a pretty bad weekend at this point as the odds favor a retest of the $0.5754 support level, meaning a 9% downside potential at current prices.

BTC Bounces Off Key Fibonacci

Bitcoin (BTC) has retraced to the 61.8% Fibonacci in the daily chart and it has temporarily bounced off this level during the American session.

However, selling pressure is strong at this point. Trading volumes have surged by 56% in the past 24 hours and the lower time frames don’t show any significant buying during the latest retrace.

It seems highly likely that BTC will drop to session lows and even below those levels. A break below this key Fibonacci level would indicate a full-blown trend reversal for the top crypto.

The $80,400 area would be the key level to watch at this point as this would mean a retest of the daily trend line support.

A bearish breakout could send BTC to the 76,000 area meaning a 5.5% downside risk.

Momentum indicators favor a bearish outlook as the Relative Strength Index (RSI) rejected a move above the signal line recently while the MACD’s histogram has posted its first negative momentum reading in nearly two weeks.

ETH Could Drop to $1,550

Ethereum (ETH) has gone down by nearly 7% during today’s session and trading volumes have surged by 60%.

The token broke its lower trend line in early February and has dropped sharply since then. So far during today’s session, the price has found support at the $1,750 level.

A double bottom could form at this mark but today’s selling pressure seems strong enough to break it.

Losing this support would result in a downside risk of 11.6% for ETH in the near term and it would also push the token to a yearly loss of more than 50%.

Negative momentum has picked up as the RSI rejected a move above the signal line while the MACD’s histogram is also about to move to negative territory.

When the MACD turns red for the first time, it typically means the beginning of a prolonged downtrend. Hence, the odds that ETH will retest the $1,550 level seem high at this point.