TLDR
- Cardano (ADA) has fallen below the critical $0.60 mark, dropping to a low of $0.5106 before starting a recovery
- Technical indicators show bearish momentum with price trading below multiple EMAs on the 4-hour chart
- Key resistance levels are at $0.60, $0.610, and $0.6320
- Important support zones include $0.5680, $0.5550, and $0.50
- A failure to break above $0.60 could trigger another decline, while clearing $0.6320 might start a rally toward $0.680
Cardano (ADA) is currently battling to regain momentum after falling below the critical $0.60 threshold. The cryptocurrency experienced a sharp decline in recent days, dropping to a low of $0.5106 before initiating a recovery wave.
The price action follows a pattern similar to other major cryptocurrencies like Bitcoin and Ethereum, which have also seen downward pressure in the market. ADA declined below several support levels at $0.550 and $0.540 before finding a temporary bottom.
Recovery efforts have pushed the price above the $0.540 and $0.5550 levels. The cryptocurrency managed to clear the 50% Fibonacci retracement level of the recent decline from the $0.6712 swing high to the $0.5106 low.
However, Cardano price is now trading below $0.620 and the 100-hourly simple moving average. This positioning suggests continued vulnerability despite the recent bounce.
A connecting bearish trend line has formed with resistance at $0.60 on the hourly chart of the ADA/USD pair. This level represents an immediate hurdle for any sustained recovery attempt.
Technical Indicators Point Downward
The technical outlook for Cardano remains concerning across multiple timeframes. On the 4-hour chart, ADA trades below all major exponential moving averages (EMAs), including the 20, 50, 100, and 200 periods, reinforcing the downward pressure.
The hourly MACD indicator is losing momentum in the bearish zone, while the Relative Strength Index (RSI) has managed to climb above the 50 level. This mixed signal suggests some potential for short-term relief but does not yet indicate a trend reversal.
The Stochastic RSI shows possibilities for a temporary bounce but lacks confirmation of a sustainable shift. With price action remaining below the mid-band of the Bollinger Bands, the overall outlook continues to favor sellers.
The breakdown from the $0.63–$0.65 range and failure to reclaim the $0.690 descending resistance highlight strong bearish control in the market. These developments have invalidated a symmetrical triangle pattern that had been forming since mid-March.
Critical Support and Resistance Levels
For ADA to regain bullish momentum, it must first overcome the immediate resistance at $0.60. Beyond this level, the next key resistance sits at $0.610, which represents the 61.8% Fibonacci retracement level of the recent decline.
A more substantial barrier exists at $0.6320. If Cardano can close above this resistance, it could trigger a stronger rally, potentially pushing the price toward the $0.680 region or even $0.70 in the near term.
On the downside, immediate support is located near $0.5680. Should this level fail to hold, the next major support zone is at $0.5550. A breakdown below this threshold could expose the $0.5320 level.
The $0.50 mark represents a critical psychological and technical support where buyers might emerge more aggressively. However, if this level breaks, ADA could test lower supports around $0.42–$0.44, a demand zone last tested in October 2023.
This area aligns with a bearish flag target and the 1.618 Fibonacci extension near $0.37, representing potential worst-case scenarios if the current weakness persists.
The 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 23.6% Fibonacci level at $0.7152 has also given way, suggesting that bullish retracement attempts have been invalidated.
Unless Cardano reclaims $0.6240 with strong volume and positive indicator confirmation, analysts believe any bounce should be treated as corrective rather than the start of a new uptrend.
For now, the price action remains contained within the recovery phase that began at the $0.510 zone, with the $0.60 level serving as the immediate barrier to overcome for any meaningful upside potential.
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