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July 21, 2025

Cardano (ADA) Price: Bulls Fight to Defend $0.71 Support as Bears Eye 12% Plunge Maisie Morrison | usagoldmines.com

TLDR

  • Cardano currently trades around $0.73, hovering near its key support at the 200-day EMA ($0.71)
  • On-chain metrics show declining daily active addresses (down to 23,644 from 35,696) and DEX trading volume ($3.06 million)
  • Technical indicators show mixed signals with bearish MACD crossover on daily chart but bullish momentum on hourly timeframe
  • ADA faces immediate resistance at $0.76 with a key bearish trend line
  • If support at $0.71 breaks, ADA could drop 12% to retest the May 6 low of $0.64

Cardano (ADA) is currently trading around $0.73, positioned at a crucial technical level that could determine its next major move. The cryptocurrency has been trading in the red on Tuesday, hovering precariously close to its key support at $0.72.

The price action comes after ADA faced rejection around the daily resistance level of $0.84 on May 13, leading to a 10% decline over the next four days.

This key resistance level coincides with the 50% Fibonacci retracement level drawn from the March 3 high of $1.17 to the April 7 low of $0.51.

On the support side, Cardano has found temporary stability around its 200-day Exponential Moving Average (EMA) at $0.71, which is currently acting as a lifeline for the cryptocurrency.

A decisive daily close below this level could trigger a more severe correction.

On-Chain Metrics Signal Weakening Demand

On-chain data presents concerning signals for Cardano investors. According to Santiment’s Daily Active Addresses index, network activity has been declining.

The number of daily active addresses has fallen to 23,644 on Tuesday from 35,696 on May 14, extending a downtrend that began in early March.

This metric is particularly important as it tracks network usage over time, with declining numbers pointing to lower demand for the blockchain.

Similarly, data from DefiLlama shows that Cardano’s decentralized exchange (DEX) trading volume has been on a consistent downtrend since early December.

Current readings show a volume of just $3.06 million on Tuesday. This reduction in volume suggests decreased user activity and liquidity in the ADA ecosystem.

These metrics collectively support a bearish thesis for Cardano’s near-term price action.

Technical Outlook Reveals Key Levels to Watch

From a technical perspective, Cardano shows mixed signals across different timeframes. The daily chart’s Relative Strength Index (RSI) reads 49, having slipped below the neutral level of 50, which indicates increasing bearish momentum.

The Moving Average Convergence Divergence (MACD) indicator also supports this bearish outlook, showing a bearish crossover on Sunday that generated a selling signal.

If ADA breaks and closes below the 200-day EMA at $0.71, it could extend its decline by approximately 12% from current levels to retest its May 6 low of $0.64.

Cardano Price on CoinGecko
Cardano Price on CoinGecko

However, short-term charts show some signs of life. On the hourly timeframe, ADA has started showing some recovery movement above the $0.7250 zone.

The price is currently trading above $0.740 and the 100-hourly simple moving average, which could provide some short-term support.

Resistance Levels Present Immediate Challenges

For any sustainable recovery, Cardano needs to overcome several key resistance levels. There is a bearish trend line forming with resistance at $0.7580 on the hourly chart.

The first major hurdle appears at $0.76, which coincides with the 76.4% Fibonacci retracement level of the recent decline from $0.7762 to $0.7110.

If Cardano can break above this level, the next key resistance would be at $0.772. A successful close above this zone could potentially trigger a stronger recovery toward the $0.80 region.

On the flip side, if ADA fails to climb above $0.76, it may resume its decline with immediate support at $0.742, followed by $0.726.

The hourly MACD for ADA is showing some momentum in the bullish zone, with the RSI above the 50 level, suggesting potential for a short-term bounce.

Cardano’s price currently trades at $0.73, caught between key support at $0.71 and resistance at $0.76, as declining network activity signals potential further downside.

The post Cardano (ADA) Price: Bulls Fight to Defend $0.71 Support as Bears Eye 12% Plunge appeared first on Blockonomi.

 

This articles is written by : Nermeen Nabil Khear Abdelmalak

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