The bearish mood in the overall crypto market continues to weigh on Cardano (ADA), which is still on the decline into early trading on Tuesday after losing over 12% of its value over the past 24 hours. At the time of writing, ADA/USD is trading at around $1.19.

Although it was one of the digital assets that had failed to break down too severely through the crypto market crash seen in mid-May, the downtrend appears to be gaining traction ever since the $1.40 level broke down over the weekend. Technical analysis points a worrying picture, indicating further room for weakness which could see the price sliding further to test the key $1.00 level – the next level of interest.

On the fundamentals front, Cardano has several promising developments that could lend it some support and ease the downslide slightly. Weiss Ratings recently confirmed that the Cardano project has an excellent technology rating, superior to that of current DeFi leader Ethereum, an encouraging sign that could potentially drive an uptick in its adoption and interest among investors.

However, the reigning sentiment in the crypto market is likely to be the main driver dictating trends in ADA in the near-term. The mood worsened considerably over reports that China banned crypto mining activities across the Sichuan Province, bringing down Bitcoin mining across the nation by over 90%.

Key Levels to Watch

On the 4-hour chart of ADA/USD, moving averages as well as leading technical indicators MACD and momentum are supporting a bearish bias, suggesting that we could see the price dip further. The price has already fallen through the $1.28 level which was acting as support previously.

The next level of interest worth watching is the support at $1.13. A breakdown of this level opens the door for further bearishness towards the $1.00 level and possibly below it as well.