Cardano (ADA) Drops 15% Since June, Nears Oversold Territory

Cardano (ADA) has been facing challenges in maintaining its price as the overall market sentiment remains uncertain. Currently, ADA is trading around $0.559, with technical indicators presenting mixed signals. The daily chart reveals a consistent downtrend since early June, with key Fibonacci retracement levels identified at $0.5, $0.618, and $0.786. The Relative Strength Index (RSI) is hovering near 33, indicating that ADA is nearing oversold territory. Historically, ADA’s RSI rarely stays below 35 for an extended period without a short-term recovery, suggesting a potential for at least a technical rebound.

The next resistance levels are around $0.618 Fibonacci at approximately $0.61 and $0.5 Fibonacci at approximately $0.68. If ADA manages to hold its current level and the RSI turns upward, a short-term move back towards $0.61 to $0.68 is possible. However, if ADA fails to maintain its position above $0.55, the next strong support levels are near $0.50 and potentially as low as $0.40 based on the next pivot (S3) level. The overall trend remains bearish, with downward sloping candles and the RSI staying below its moving average line. For a real trend reversal, buyers need to push ADA price above the $0.61–$0.68 range.

In summary, ADA price is near oversold territory and could see a bounce if buyers step in. A break above $0.61 may open the door to $0.68. If support at $0.55 fails, expect a drop towards $0.50 or even $0.40. Traders should watch the RSI for signs of reversal and monitor the $0.55 zone closely. Risk management is key in this sideways-to-bearish setup.