Cardano (ADA) plunged below a critical support zone today, fueling speculation of a more profound decline toward the $0.50 level. After facing rejection at the $0.70 resistance earlier this week, ADA has come under intensified selling pressure.
The breakdown started with a decisive move below the ascending wedge support on the 4-hour chart. This triggered heavy liquidations and pushed the price down into the $0.62 to $0.63 demand zone. That area had previously served as a short-term base during late May but is now under fresh pressure.
Momentum indicators continue to flash warning signs, with the 30-minute Ichimoku Cloud showing the price firmly below the Kumo while the Kijun-Sen line remains in decline. These signals reinforce a bearish short-term outlook unless bulls reclaim the $0.6490 level.
Source: Tradingview
On the 4-hour chart, the Bollinger Bands show ADA trading at the lower band, suggesting oversold conditions. However, major exponential moving averages between $0.6780 and $0.7060 remain overhead, signalling strong resistance for any recovery attempts.
Also Read: Bitcoin Dips Below Key Support Levels Amid Market-Wide Sell-Off Pressure
Bearish Signals Mount as Key Levels Continue to Break Down
The RSI on the 30-minute timeframe has rebounded slightly to 38.40 after reaching oversold levels. A minor bullish crossover on the MACD histogram also hints at reduced bearish momentum but not enough to confirm a trend reversal.
Source: Tradingview
ADA’s weakness follows a failed breakout near $0.72, which showed bearish divergence across multiple timeframes. This wrong step paved the way to an even bigger selloff, which gathered momentum following the break of trendline supports on several charts.
Broader market sentiment has also played a role, as Bitcoin and Ethereum have stalled at key resistance zones, dragging altcoins lower. As a result, Cardano continues to struggle, with sellers maintaining control below the 0.618 Fibonacci level.
Source: Tradingview
A breakout below the $0.6200 area would set the stage for a decline to the next significant support area at $0.6000. Beneath it, the 0.786 Fib retracement level around $0.50 is the next significant objective in the event that the downside motion gathers pace.
The inability of Cardano to defend important support areas has enhanced the prospects of a more significant correction. Where selling strength remains strong and overhead resistance areas are still in place, a move back toward the $0.50 area cannot be discounted.
Also Read: SUI Crashes Below Key Support as Bears Target $2.40 in Steep Selloff
