Is Cardano's Bounce Weakening? ADA Recovery May End Soon
Cardano (ADA) started a rebound from around the $0.6420 level, but strong resistance near $0.6850 is limiting the upside. This could signal a potential end to the recovery phase and a possible return to downside pressure.
Cardano Price Facing Key Resistance
Similar to Bitcoin and Ethereum, Cardano has seen a notable decline from the $0.7300 zone in recent days. The price broke below key support levels at $0.7000 and $0.6800.
After hitting a low of $0.6426, ADA managed a minor recovery, climbing above $0.6550. It also broke above the 23.6% Fibonacci retracement level of the recent drop from the $0.7298 swing high to the $0.6426 low. Furthermore, on the hourly ADA/USD chart, the price broke above a connecting bearish trend line at around $0.6500.
Resistance at $0.6850 Still Strong
Despite the recovery, sellers are active near the $0.6850 resistance level, which also aligns with the 50% Fibonacci retracement of the same recent drop. ADA remains below $0.6800 and the 100-hour simple moving average (SMA), signaling continued bearish pressure.
If ADA manages to clear $0.6850, the next major hurdle lies at $0.7090. A confirmed close above this level could trigger a stronger upward move toward $0.7300 or even $0.7500.
Could ADA Drop Again?
If Cardano fails to break through the $0.6850 resistance, a fresh decline is likely. Immediate support lies near $0.6630, followed by a key support zone around $0.6500.
A downside break below $0.6500 could lead to a test of the $0.6320 level. Further losses might push the price down to $0.6175, where bulls could potentially step in.
Technical Indicators:
Hourly MACD – Losing bullish momentum.
Hourly RSI – Holding above 50 but showing signs of consolidation.
Key Support Levels: $0.6630, $0.6500
Major Resistance Levels: $0.6850, $0.7090
