Cardano (ADA) is showing signs of instability after briefly plunging to $0.516 during early trading. The cryptocurrency staged a modest recovery to around $0.548, but intense selling pressure continues to cap upside attempts.
The recent price action follows a sharp decline that broke through multiple support levels, sparking concern across the market. ADA now trades just above the crucial $0.50–$0.52 support zone, a level that aligns with the 0.786 Fibonacci retracement on the weekly chart.
This area has historically acted as a turning point, signaling either the start of a rebound or deeper losses.
Source: Tradingview
On the higher time frame, Cardano has lost over 60 percent since reaching $1.327 earlier this cycle, making the current movement near $0.501 critical. A breakdown below this threshold could lead to fresh lows between $0.42 and $0.45, while a successful hold could trigger a short-term relief bounce targeting the $0.60–$0.68 range.
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Traders Eye Volume Breakout as Key Technical Zones Tighten
Short-term charts show complex price behavior marked by smart money signals such as a Break of Structure and a Change of Character. These patterns have emerged around supply zones at $0.58, $0.63, and $0.66. Liquidity sweeps below recent lows, followed by a minor bullish shift, suggesting larger players may be positioning against weak hands.
Source: Tradingview
Technical indicators remain deeply bearish, with Bollinger Bands on the 4-hour chart narrowing as price struggles at the mid-band. Stacked above ADA are 20, 50, 100, and 200 EMAs, with immediate resistance at the current level of $0.561. It is unlikely that the price will weaken that far until that point is regained.
Source: Tradingview
The RSI is lower in timeframes at 58.20 after a mild divergence, while the MACD signals weak buying momentum. The Supertrend and Parabolic SAR, which are bearish as well, further support the downtrend.
Source: Tradingview
Other bearish indicators are in the DMI, where the -DI is still leading its +DI counterpart, with the ADX rising. This situation usually augers well for an ongoing bearish trend. The Money Flow Index is found to be weak, suggesting that buyer participation is low.
Source: Tradingview
If bulls fail to defend the $0.50 level, ADA could quickly revisit $0.475 and possibly fall toward the $0.42–$0.45 demand area. Nevertheless, if the token reclaims the price of $0.561 with the support of the volumes, it can make an effort to break out around $0.622 and above.
Conclusion
Cardano stands at a critical junction as it flirts with a breakdown from key support. Whether ADA rebounds or faces a steep decline hinges on its performance around the $0.50 mark in the coming sessions.
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