By Nermeen Nabil Khear 
TLDR
- Cardano (ADA) has experienced a notable decline from the $0.70 price level and is currently testing support at $0.60
- Technical analysis shows the price trading below both $0.6550 and the 100-hourly simple moving average, with a bearish trend line forming at $0.660
- Key resistance levels are established at $0.660 and $0.70, while major support levels sit at $0.60 and $0.5850
- The MACD indicator suggests increasing bearish momentum in the market
- A break below $0.5850 could lead to further decline toward the $0.50 level
Cardano (ADA) is experiencing mounting pressure in the cryptocurrency market as the digital asset continues its downward trajectory from recent highs. The price action shows a clear shift in market sentiment after failing to maintain momentum above the $0.70 price level.
The latest market data indicates that ADA’s price movement has broken below several key technical levels, including the $0.6850 and $0.650 marks. This descent mirrors similar patterns observed in other major cryptocurrencies, particularly Bitcoin and Ethereum, suggesting a broader market trend rather than isolated weakness.
Trading activity shows that ADA formed a local top before initiating its current decline. The downward movement has been particularly noteworthy, with bears successfully pushing the price below the $0.6350 threshold. The most recent low was recorded at $0.6016, marking a crucial point in the current price action.
Trading Analysis
Technical analysis reveals that the price is now trading below both the $0.650 level and the 100-hourly simple moving average, traditionally considered important technical indicators. This positioning below key moving averages often suggests sustained bearish pressure in the near term.
The immediate resistance level has emerged around the $0.620 zone, with another notable barrier at $0.640. These levels align with the 50% Fibonacci retracement level of the recent downward wave, which extends from the $0.6769 swing high to the $0.6016 low.
Market observers have identified a bearish trend line forming with resistance at $0.660 on the hourly chart of the ADA/USD pair. This technical formation adds another layer of resistance that bulls would need to overcome for any sustained upward movement.
The MACD indicator, a popular tool for gauging market momentum, shows increasing strength in the bearish zone. This technical signal suggests that selling pressure might continue in the short term, potentially leading to further price declines.
The Relative Strength Index (RSI) for ADA/USD has dipped below the 50 level, indicating that bearish momentum currently dominates the market. This technical indicator often serves as a reference point for traders making short-term decisions.
Looking at potential price targets, if ADA manages to break above the $0.660 resistance, it could initiate a rally toward the $0.680 region. A successful breach of this level might open the path to retesting the $0.70 mark.
However, if the current bearish pressure persists and the price fails to overcome the $0.660 resistance, further decline might occur. The immediate support level sits near $0.60, with the next major support zone around $0.5850.
A break below $0.5850 could potentially lead to a test of lower support levels, with $0.550 serving as the next target for bears. The $0.50 level represents a major psychological support where buying interest might emerge.
Current market data shows that trading volume remains consistent with recent averages, suggesting that the price movement is supported by regular market participation rather than unusual trading activity.
The hourly chart patterns indicate that buyers have attempted to defend the $0.60 support level, though these efforts have yet to produce a sustained bounce in price.
Recent trading sessions have shown increased volatility, with price swings becoming more pronounced as the market tests key support levels.
The most recent price action shows ADA consolidating around the $0.60 level as traders await clear directional signals.
The post Cardano (ADA) Price: Key Levels to Watch as Bears Target $0.50 appeared first on Blockonomi.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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