TLDR
Table of Contents
- Cardano (ADA) is trading below $0.60 and the 100-hourly simple moving average
- ADA formed a low at $0.5106 before starting a recovery wave
- Bearish trend line shows resistance at $0.60 on the hourly chart
- Technical indicators show mixed signals with RSI above 50 level but MACD in bearish zone
- Multiple support levels exist at $0.5680, $0.5550, and $0.50 if downward trend continues
Cardano (ADA) is currently facing significant challenges as it attempts to recover from a recent price decline. The cryptocurrency dropped below several key support levels in the past few days, mirroring similar movements seen in Bitcoin and Ethereum.
ADA price formed a low at $0.5106 before beginning a recovery phase. This bounce helped the cryptocurrency clear the $0.540 and $0.5550 levels, as well as the 50% Fibonacci retracement level of the recent decline from the $0.6712 swing high.
Despite this recovery attempt, Cardano continues to trade below $0.620 and the 100-hourly simple moving average. A connecting bearish trend line has formed with resistance at $0.60 on the hourly chart of the ADA/USD pair.
Technical Picture Remains Challenging
The technical outlook for Cardano suggests ongoing difficulties. On the upside, the price faces immediate resistance near the $0.60 zone, with additional resistance at $0.610, which coincides with the 61.8% Fibonacci retracement level of the recent decline.
If buyers can push the price above these levels, the next key resistance would be at $0.6320. A close above this level might trigger a stronger rally, potentially sending ADA toward the $0.680 region or even the $0.70 mark in the near term.
However, technical indicators present a mixed picture. The hourly RSI for ADA/USD is now above the 50 level, suggesting some positive momentum. But the hourly MACD is losing momentum in the bearish zone, indicating continued selling pressure.
On longer timeframes, the situation appears more bearish. ADA trades below all major moving averages on the 4-hour chart, including the 20, 50, 100, and 200 EMAs. This alignment reinforces the downward pressure that has been building.
Multiple Support Levels Under Threat
If Cardano fails to overcome the $0.60 resistance, another decline seems likely. Immediate support lies near $0.5680, with the next major support at $0.5550.
A break below these levels could open the door for a test of $0.5320. Should the bearish pressure intensify, the $0.50 level becomes critical as a psychological support where buyers might step in.
The breakdown from the $0.63–$0.65 range and failure to reclaim the $0.690 descending resistance highlight strong bearish control. This move also invalidated a symmetrical triangle pattern that had been forming since mid-March, signaling a continuation of downside momentum.
If the $0.50 support fails to hold, analysts suggest ADA could potentially drop to the $0.42–$0.44 demand zone. This area was last tested in October 2023 and aligns with both a bearish flag target and the 1.618 Fibonacci extension near $0.37.
Daily chart analysis reveals that ADA has broken out of a rising wedge pattern and now trades well below its multi-month ascending trendline. The failure at the 23.6% Fibonacci level ($0.7152) suggests that bullish retracement attempts have been invalidated.
Unless Cardano reclaims $0.6240 with strong volume and positive indicator confirmation, any bounce should be considered corrective rather than the start of a new uptrend.
The overall structure remains tilted to the downside with bearish dominance reinforced across trend, momentum, and volatility indicators.
For now, the cryptocurrency’s immediate focus will be on whether it can break above the $0.60 resistance or if it will continue testing lower support levels in the days ahead.
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