Cardano (ADA) Plunges 17% as Traders Eye Critical Trendline Support

Cardano's ADA token takes a brutal 17% haircut—traders now watch that trendline like hawks circling wounded prey.

Technical Breakdown

The sell-off slams ADA against its last meaningful support level. Break this, and bulls might need more than just hope to stop the bleeding.

Market Pulse

Traders scramble, charts flash red, and the usual 'buy the dip' crowd hesitates. Another day in crypto—where 'support' is just a suggestion until it isn't.

Outlook: Razor's Edge

Hold that line, or watch portfolios get a reality check. After all, in crypto, 'fundamentals' often just mean 'the last guy's exit liquidity'.

TLDR

• Cardano is trading at $0.85 within a tightening triangle pattern
• Key resistance level at $0.98 could trigger a bullish breakout if cleared
• Bears have pushed ADA below $0.90 support and the 100-hour moving average
• Technical indicators show bearish momentum with RSI below 50
• Support levels at $0.84 and $0.825 are critical for preventing further decline

Cardano price is currently at a critical price point as traders watch for the next major move. ADA is trading at $0.85, trapped within a narrowing triangle pattern that has formed over recent trading sessions.

The cryptocurrency faces a key resistance level at $0.98. This price point has previously rejected upward moves, making it a crucial threshold for bulls to overcome. Breaking above this level could spark momentum buying and push prices higher.

Recent price action shows bearish pressure taking control. ADA has fallen below the $0.920 support zone after reaching a high of $1.020. The decline has pushed the price below both the $0.90 level and the 100-hour simple moving average.

Technical analysis reveals a bearish trend line forming with resistance at $0.940 on the hourly chart. The price movement has also broken below the 50% Fibonacci retracement level of the recent upward MOVE from $0.765 to $1.020.

Current Technical Indicators

The hourly MACD is gaining momentum in the bearish zone, supporting the current downward pressure. The RSI has dropped below the 50 level, indicating weakening buying pressure in the NEAR term.

Key support levels are now in focus as bears maintain control. The immediate support sits at $0.84, followed by a more critical level at $0.825. This lower support aligns with the 76.4% Fibonacci retracement level.

If Cardano fails to find support at current levels, further decline could target the $0.80 region. A break below $0.825 would open the door for a test of $0.78, where bulls might emerge to defend the price.

Upside Potential Remains

Despite current bearish pressure, upside potential exists if key resistance levels break. The first resistance sits at $0.892, followed by the more critical $0.940 level and trend line.

A close above $0.940 and the bearish trend line could trigger a strong rally. Such a breakout might push ADA back toward the $1.00 region, with additional gains potentially reaching $1.050.

The triangle pattern formation suggests a resolution is approaching. These patterns typically result in a breakout in either direction once the narrowing range can no longer contain the price.

Volume and momentum will be key factors in determining the breakout direction. A break above $0.98 with strong volume could attract momentum traders and push prices higher.

Conversely, a drop below $0.89 WOULD likely trigger bearish sentiment. This could lead to a test of the $0.85 support level and potentially lower targets.

Current market conditions show ADA caught between competing forces. Bulls are defending support levels while bears maintain pressure on resistance zones.

The coming sessions will determine whether cardano can reclaim bullish momentum or face further decline. Traders are watching the $0.98 resistance and $0.84 support as key levels for the next major move.