Cardano (ADA), one of the top cryptocurrencies by market cap, is flashing bearish signals as it battles to hold a crucial support level at $0.620. After sliding below $0.70 and $0.680, ADA continues to trade under pressure, with analysts warning that a breakdown could send the price tumbling toward $0.60 or even lower.
Cardano Price Analysis: Bulls Losing Ground
Over the past several sessions, ADA failed to mirror the relative stability of Bitcoin and Ethereum, instead charting a downward path. The price dipped below the $0.720 and $0.700 levels, and more importantly, lost its footing under the $0.680 zone.
A local low formed near $0.6134, from which ADA attempted a modest recovery. It climbed above $0.620 and briefly tested $0.6560, but bears quickly reasserted control, preventing further upside. The token now trades below its 100-hourly simple moving average, consolidating near the key $0.630 zone.
A bullish trend line support exists near $0.630 on the hourly ADA/USD chart (data source: Kraken), but this alone may not be enough to hold off renewed bearish pressure.
Key Technical Levels and Indicators
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Resistance Levels: $0.650, $0.6560, $0.6720
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Support Levels: $0.630, $0.620, $0.600, $0.5650
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MACD Indicator: Gaining strength in the bearish zone
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RSI Indicator: Currently below 50, indicating bearish momentum
The 23.6% Fibonacci retracement of the drop from $0.7311 to $0.6134 offered temporary relief, but strong resistance at $0.6560 and $0.6720 is proving tough to crack. Unless ADA breaks above $0.6720 with conviction, the risk of another sharp correction remains high.
What Happens if $0.620 Fails?
If $0.620 support fails to hold, it could trigger a drop toward the $0.600 level, a psychological and technical support. A break below that may open the gates to $0.5650, where some buyers could re-enter the market.
On the flip side, if bulls manage to push above $0.6720, ADA could reclaim the $0.70 mark and potentially retest the $0.7350 swing high. But with momentum favoring sellers, the odds currently lean bearish.
Market Sentiment and Next Moves
Cardano’s ongoing price consolidation below the 100-hour moving average and fading upside attempts reflect weak short-term sentiment. Traders should keep a close eye on $0.620, as this level could decide ADA’s next major move in either direction.
With broader crypto markets facing mixed signals, ADA’s near-term fate depends heavily on technical triggers, and bulls have little room for error.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
