- Cardano is struggling to maintain support above $0.50, with bearish pressure pushing it toward a potential drop to $0.32.
- However, a short-term recovery is possible if ADA holds above key Fibonacci levels, potentially leading to a retest of $0.6673.
Cardano (ADA) is currently battling bearish market conditions, struggling to maintain its position above the $0.50 mark. With Bitcoin experiencing a momentary dip below $75,000, the ADA token has dropped to a 24-hour low of $0.51. At press time, Cardano is trading at $0.5482, showing a 4.38% intraday decline. The looming question: Will the ADA token experience a further nosedive to $0.32, or is a bullish reversal still in play?
Cardano’s Price Action: Testing Key Support
Cardano’s price chart reveals a troubling trend. After a breakdown from a consolidation range, ADA’s prices have fallen, with the asset now approaching a long-standing support trendline. On Sunday, Cardano saw a sharp 12.41% drop, further intensifying the bearish pressure. At one point, ADA dipped below the 23.60% Fibonacci level at $0.5346, which raised concerns of an impending breakdown.
Despite these negative moves, Cardano is still holding above the psychological $0.50 support level. Buyers seem to be maintaining support at this crucial Fibonacci level, suggesting a potential for a reversal. The possibility of a bullish turnaround isn’t off the table yet, as similar patterns have played out since late 2024.
However, the 50-day and 200-day exponential moving averages are closing in on a death cross formation. This technical signal, often seen as a bearish indicator, could lead to a sell-off if confirmed.
What’s Next for Cardano’s Price?
Currently, the True Strength Index (TSI) is at -0.91, indicating a strong bearish trend. The risk of a breakdown below the 23.60% Fibonacci level is high, which could lead to a further decline in ADA’s price. If Cardano closes below $0.5346, the next target may be the $0.32 support level, marking a potential downside of up to 40%.
That said, there is still hope for a short-term recovery. If ADA can manage to bounce back from the 23.60% Fibonacci level, a bullish recovery could lead to a retest of the 38.20% level at $0.6673, offering a nearly 20% upside potential.
While the market pressures weigh heavily on Cardano, the next few days will be crucial in determining whether ADA can sustain its $0.50 support or if a deeper decline is on the horizon.
