Cardano (ADA) has been attempting a recovery, but the recent bounce from the $0.6420 support zone appears to be losing strength. Despite a modest rebound, bearish pressure is mounting, and the ADA recovery could be short-lived if key resistance levels hold firm.
Cardano’s Recovery: A Closer Look
After a sharp drop from the recent swing high of $0.7298, ADA found support near $0.6426 and started a minor recovery wave. The price managed to reclaim levels above $0.6550 and even broke a bearish trend line around the $0.650 mark on the hourly chart.
Moreover, ADA crossed the 23.6% Fibonacci retracement level of the downward move from $0.7298 to $0.6426. This technical development sparked hopes of a potential upward continuation.
However, the recovery rally faced immediate resistance near $0.680 and the 100-hour Simple Moving Average (SMA). The most significant barrier lies around the $0.6850 zone, which also aligns with the 50% Fibonacci retracement level of the recent decline.
Resistance Zones to Watch
Initial resistance sits at $0.680, where ADA is struggling to maintain momentum.
Key resistance is located at $0.6850—a critical level where bears are actively defending.
A successful close above $0.6850 could push ADA toward $0.7090.
If bullish momentum increases, a breakout above $0.7090 may open the door for a test of the $0.730 swing high.
Beyond that, the next potential target for bulls could be around $0.750.
Risk of Another Pullback
Despite the current recovery attempt, failure to clear the $0.6850 resistance could trigger another downside correction.
Immediate support lies at $0.6630.
A drop below this level might bring the price back toward $0.6500.
If bearish pressure intensifies, ADA could revisit $0.6320, and possibly test the $0.6175 support level, where buyers may try to regroup.
Technical Indicators
MACD (Hourly): The MACD for ADA/USD is slowly losing bullish momentum, signaling caution.
RSI (Hourly): The RSI remains above 50 but is not strongly bullish, indicating a neutral to slightly positive momentum.
Conclusion
Cardano’s recovery from the $0.6420 support is at a critical juncture. While a breakout above $0.6850 could trigger a short-term rally, failure to breach this zone might send ADA tumbling toward lower supports. Traders should watch key levels closely and manage risk accordingly, as volatility remains high.