Cardano (ADA) is currently facing strong bearish pressure, which has caused a significant drop in its price. Recently, ADA has broken key support levels and shows clear signs of downward consolidation, which could anticipate further declines in the short term.
Current Price Analysis
After staying above $0.70 for a while, ADA fell back below this important barrier, now positioned below the simple moving average (SMA) of 100 hours, a key technical indicator confirming the short-term bearish trend.
On the hourly chart, ADA/USD broke a positive trend line that was supporting around $0.6840, which has facilitated the price plummeting to a recent low of $0.6626. Since then, the asset has been consolidating, but still within a risk zone.
Technical Levels to Watch
Resistances: The first important resistance is at $0.6720, near the 23.6% Fibonacci retracement of the recent drop. Higher up, key resistance is around $0.6825, which corresponds to the 50% retracement. Surpassing $0.6920 could mark the beginning of a stronger rebound, with potential to reach $0.7350 and possibly $0.750.
Supports: On the downside, immediate support is near $0.6625. If this level fails, the next strong support is at $0.650, a crucial level to determine if the decline will continue. If $0.650 breaks, the price could drop towards $0.620, followed by more significant support at $0.60, where buyers may attempt to stabilize the price.
Technical Indicators
Current technical indicators reinforce the negative outlook:
The hourly MACD is in negative territory, indicating a predominant bearish momentum.
The hourly RSI remains below 50, showing a lack of strength in buyers.
What to Expect for ADA?
The recent break of key supports and consolidation below $0.70 suggest that Cardano could face more declines if it fails to overcome immediate resistance at $0.6825. A failure to recover may push the price to test lower support levels, increasing the bearish pressure.
However, a solid close above $0.6920 could change the landscape, allowing for a possible recovery towards $0.7350 and $0.750, levels that would be important to regain investors' confidence.
Conclusion
Cardano is in a critical zone. The next price movements around $0.650 and $0.6825 will be decisive to determine whether the bearish trend will continue or if we will see a significant rebound. Investors should closely monitor these key levels and watch technical indicators to make informed decisions.
