- Cardano (ADA) is under strong bearish pressure as it tests key support around $0.62, with multiple technical indicators signaling potential further downside.
- Unless buyers step in soon, ADA could drop toward $0.55, though a breakout above $0.70 may trigger a short-lived rally.
Cardano (ADA) is currently navigating a critical juncture, with technical signals flashing red as it tests key support levels. After a sharp rejection from the $1.20 zone, ADA has entered a sustained downtrend, raising concerns of a potential deeper sell-off if buying pressure doesn’t materialize soon.
Price Overview: Bearish Momentum Takes Hold
As of writing, Cardano trades at $0.6242, down 2.75% in the past 24 hours. The asset continues to post lower highs and has struggled to reclaim any meaningful bullish momentum. Declining volume suggests weak buyer conviction, while sellers remain firmly in control.
Key Technical Indicators: Warning Signs Multiply
- MACD: The MACD indicator remains below the signal line in negative territory, confirming the bearish trend. No bullish crossover has been established, indicating a lack of reversal strength.
- RSI: Currently estimated between 30 and 40, the RSI highlights bearish momentum. However, since it’s not yet in oversold territory, ADA could see further downside before any relief bounce.
- Bollinger Bands: While not shown directly, the price is likely hugging the lower band—suggesting sustained selling pressure and possible volatility expansion if support breaks.
Chart Patterns: The Bearish Case Builds
Several patterns suggest that ADA is far from out of danger:
- Descending Triangle: ADA is forming a descending triangle with horizontal support at $0.62. A breakdown could send prices tumbling toward $0.55.
- Bear Flag: After falling from $1.20, ADA’s weak consolidation hints at a bear flag formation—typically a continuation pattern for further downside.
- Double Top: March’s rejection near $0.90–$0.95 formed a clear double top, accelerating the current bearish trajectory.
- Rounded Top: The broader structure from February to April resembles a rounded top—signaling long-term exhaustion in bullish momentum.
Make-or-Break Moment for ADA
Cardano is teetering on a technical knife’s edge. A confirmed break below $0.62 could trigger a sharp move to $0.55, while a push above $0.70 might spark a relief rally toward $0.75–$0.80. However, given the current setup, the bears remain in the driver’s seat unless bulls return with volume and conviction. Traders should brace for volatility and keep a close eye on breakout or breakdown confirmations.
