Cardano has been exhibiting a strong downtrend on its short-term chart, with recent ADAUSD price action showing signs of potential further weakness after a brief corrective bounce.
The cryptocurrency is currently trading at $0.6716, having recovered slightly from its recent lows but still maintaining an overall bearish bias after breaking below a key area of interest.
The price chart clearly displays a downward trajectory that began after ADA/USD hit resistance around the $0.7000 level which has previously held as support. This descent has been characterized by lower highs and lower lows, confirming the bearish sentiment in the market. Though there have been attempts to recover, sellers have consistently returned at key resistance levels.
Still, a break above the near-term area of interest could suggest longer-term upside momentum accelerating and taking ADAUSD back to the latest resistance at $0.7500 or higher.
Key Cardano Levels to Watch
The Fibonacci extension levels drawn from the previous decline reflect potential bearish targets to watch. The current price is hovering between the 38.2% Fibonacci extension level at $0.6450 and the 50% level at $0.6283.
These Fibonacci levels are acting as important reference points for potential support and resistance zones. Should the price break below the 50% extension level, the next significant support would be at the 61.8% Fibonacci level at $0.6116.
- 38.2% Fibonacci extension: $0.6450
- 50% Fibonacci extension: $0.6283
- 61.8% Fibonacci extension: $0.6116
- 76.4% Fibonacci extension: $0.5909
- Full Fibonacci extension: $0.5575
- Swing High resistance: $0.6991
- March highs: $0.7500
ADAUSD Technical Analysis
From a moving average perspective, the 100 SMA (simple moving average) is positioned above the 200 SMA, which typically indicates an underlying bullish bias.
However, the price is currently trading below both moving averages, and the gap between them appears to be narrowing. This suggests that momentum could be shifting more decisively to the downside, with a potential bearish crossover on the horizon where the 100 SMA would drop below the 200 SMA, confirming the bearish outlook.
The stochastic oscillator (14, 3, 3) is currently moving downward from the overbought territory, signaling that selling pressure is intensifying after a brief period of bullish momentum. This technical indicator suggests that bears are regaining control of the market, potentially leading to a continuation of the downtrend.
The MACD (Moving Average Convergence Divergence) indicator is showing a bearish crossover, with the MACD line crossing below the signal line and histogram bars turning negative. This reinforces the bearish sentiment indicated by other technical factors.
If sellers maintain control, Cardano could target the 61.8% Fibonacci level at $0.6116 as the next significant support. A break below this level could accelerate the decline toward the 76.4% extension at $0.5909, with the full extension level at $0.5575 representing a major support zone that bulls would likely defend vigorously.
Conversely, if buyers manage to push the price above the immediate resistance at the .7000 handle, the next challenge would be to overcome the 200-day moving average. Such a move would need to be accompanied by increased trading volume to suggest a potential trend reversal.
For traders and investors, the current technical setup suggests maintaining caution. The bearish momentum appears strong in the short term, with multiple technical indicators aligning to suggest further downside potential.
