Cardano bearish pattern violated

The ADA/USD crashed in the short term, escaping from a downside continuation pattern. It's trading at 0.2586 at the time of writing, and it seems very heavy. The altcoin dropped by 8.11% from Tuesday's high of 0.2799 to 0.2572 today's low.

Cardano is down by 1.26% in the last 24 hours and by 1.89% in the last 7 days. BTC/USD's deeper drop forces the altcoin to hit new lows.

ADA/USD Challenges 0.2575 Support

As you can see on the H4 chart, the rate failed to retest the downtrend line, signaling exhausted buyers. The price action developed a flag pattern, which could announce a downside continuation.

It has dropped below the flag's support, and now it challenges the 0.2575 downside obstacle.

ADA/USD Forecast

A bearish closure below 0.2575 activates more declines. This is seen as a selling opportunity.