ADA price loses critical support: How should investors proceed if a 16 percent drop comes in?

The price of Cardano (ADA), one of the popular altcoins in the cryptocurrency market, has broken from a short-term ascending support line, a sign that the previous uptrend has ended.
If the downside continues, the price could approach the lowest level of the year. However, there is no indication of this yet.
ADA price fails to sustain its rise
Technical analysis on the daily timeframe shows a bearish bias for the price for a number of reasons.
First, ADA recently broke out of a short-term descending resistance line that has been in effect since April 13. This breakout is a strong and clear signal that the downtrend has ended and a new uptrend has begun.
However, the favorite altcoin could not sustain its increase and was rejected at $0.36. This catalyzed a decline that drove the price back to pre-exit levels.
Additionally, the daily Relative Strength Index (RSI) is bearish. Currently, the RSI is below the 50 mark, which means that the downside move may continue.
However, it is worth noting that Cardano founder Charles Hoskinson has announced a network upgrade that will greatly improve the speed and efficiency of the Cardano blockchain.
ADA price prediction: Short-term breakout accelerates decline
The 6-hour short-term price chart is also bearish, similar to the daily chart.
To begin with, the Elliott Wave number indicates the completion of an ABC corrective build. As this correction is on the upside, it indicates a possible downtrend. Technical analysts use Elliott Wave theory to identify recurring long-term price patterns and investor psychology and assist them in determining the direction of the trend.
The decline was confirmed as ADA price broke the short-term ascending support line on July 31. This marks the end of the previous 72% rally and the start of a new decline.
Also, the six-hour Relative Strength Index (RSI) is trading below 50.
Despite this downside short-term ADA price prediction, a potential reversal could push the price back towards the ascending support line at $0.33.
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