Cardano (ADA) recently attempted a recovery, bouncing above the $0.680 zone, but the rally was short-lived. Despite breaking key resistance levels, ADA failed to sustain momentum above $0.70, leading to another downturn. The cryptocurrency is now trading near $0.650 and remains at risk of further losses.
After reaching a high of $0.7090, Cardano reversed its gains, breaking below the $0.650 level and a key bullish trendline at $0.6720. The price is currently consolidating losses near the 23.6% Fibonacci retracement level of its decline from $0.7090 to $0.6356. ADA is also struggling below the 100-hourly simple moving average (SMA), indicating continued bearish pressure.
For a potential rebound, ADA must first overcome resistance at $0.6720, which coincides with the 50% Fibonacci retracement level. Further resistance lies at $0.6950, followed by the critical $0.70 mark. A decisive breakout above $0.70 could trigger a rally toward $0.7420 and possibly $0.7650 in the near term.
However, failure to reclaim these resistance zones may lead to further losses. Immediate support lies at $0.6420, followed by a major support zone at $0.6350. A break below this level could send ADA tumbling toward $0.620 and possibly as low as $0.60, where buyers may step in to prevent a deeper selloff.
Technical indicators suggest continued uncertainty. The hourly MACD is losing momentum in the bearish zone, and the RSI is below the 50 level, signaling weakness. Unless ADA can push past key resistance levels, the risk of another downward move remains high.
With Cardano at a critical juncture, will bulls regain control, or is another drop inevitable? The next few sessions will be crucial in determining ADA’s short-term trajectory.
