Cardano (ADA) Under Pressure: Key Support Levels Tested as Selling Momentum Mounts Cardano (ADA) is currently navigating a challenging market environment, with its price experiencing a fresh decline below the crucial $0.850 support zone. The cryptocurrency is now consolidating its losses, with analysts closely watching whether this downward movement signifies the beginning of a more sustained bearish trend, potentially pushing ADA below the psychological $0.80 mark.
Price Action and Technical Overview
Following a period of steady gains, Cardano encountered significant selling pressure near the $0.880 level, initiating a downside correction mirroring movements seen in other major cryptocurrencies like Bitcoin and Ethereum. This correction led ADA to dip below key support levels at $0.850 and $0.8320. The bears further intensified their push, driving the price even lower, to form a recent low at $0.8003. Currently, ADA is trading below both the $0.820 threshold and the 100-hourly simple moving average. A critical bearish trend line with resistance at $0.820 is forming on the hourly chart, indicating that a break above this level is essential for any potential recovery.
Resistance and Support Levels to Watch
For Cardano to reverse its trajectory, it must overcome immediate resistance at the $0.820 zone. Subsequent upside resistance could be found near $0.8280, which aligns with the 76.4% Fibonacci retracement level of the recent decline from the $0.8376 swing high to the $0.8003 low. A successful breach and close above the $0.840 resistance level could ignite a stronger rally, potentially targeting the $0.8620 region and, in the near term, the $0.880 high. However, if ADA fails to break above the $0.840 resistance, further declines are anticipated. Immediate downside support resides near the $0.80 level, with the next major support zone around $0.780. A decisive break below $0.780 could open the door for a test of $0.7620, followed by the $0.750 support level where bulls might attempt to re-enter the market. Technical indicators, including the Hourly MACD, show increasing bearish momentum, and the Hourly RSI for ADA/USD is currently positioned below the 50 level, reinforcing the prevailing selling pressure.
