Cardano (ADA) has not been trending well recently. In fact, since the digital asset reached a high above $3 in September 2021, it has been a never-ending cycle of heartbreak for its owners. Each slight upward recovery has been followed by a deeper drop, sending the cryptocurrency to new lows. With the various market crashes, the asset has now lost roughly 60% of its all-time high value, but the worst appears yet to come.

Cardano (ADA) Has Not Yet Bottomed

Despite the fact that Cardano (ADA) has fallen below $1, it appears that the digital asset is still far from its bottom. It had grown tremendously in the space of a year in 2021, starting at less than $0.20 and ending at more than $3. However, the digital asset has continued to bleed all of its gains from this point until 2022. And it has once again lost support at the $1 level.

ADA/USD traders should be aware of where the cryptocurrency is currently trading. A look at the charts paints a very bleak picture of the asset in the short and medium-term. It is trading below every available moving average and is still trading below its year-to-date average.

It is currently one of the digital assets with the highest sell pressures, with sell sentiments at nearly 100%. This is not good news for ADA, which remains one of the most popular projects in the space but falls short in terms of cost when compared to other projects of its caliber. Despite the fact that transaction volumes on the network have increased due to the introduction of DeFi protocols such as SundaeSwap, they remain very low in terms of value.

With each dip, the digital asset’s support levels deteriorate. After falling below $1, the next support level at $0.92 was barely able to withstand the bears’ onslaught. It quickly fell below this level and is now preparing to test the next one. Significant resistance is expected at the first point, which is $0.97. Following this, $0.995 and $1 are not far behind.

If ADA fails to stay above $0.924121, the next support level is at $0.903. If this level holds, it will test one of its lowest yearly levels yet if it falls through to $0.8.