Cardano (ADA) Drops 4% as Selling Pressure Persists
1min read Cardano (ADA) is currently trading at $0.657, indicating sustained selling pressure after failing to reclaim the $0.68–$0.70 resistance band. Over the past 48 hours, ADA has gradually declined from the mid-$0.68s, signaling a loss of bullish momentum following its rejection at the 200-EMA on the 4-hour chart. This decline aligns with the broader market’s pause, as traders focus on short-term support zones to determine the next significant move.
On the 4-hour timeframe, ADA remains below all major exponential moving averages (20, 50, 100, 200), confirming a bearish short-term outlook. The price action has turned sideways-to-negative, with lower highs and lower lows since the beginning of May. The recent breakdown beneath the ascending trendline from April 21 exposes ADA to further downside.
ADA’s momentum indicators reinforce the bearish view. The Relative Strength Index (RSI) is around 35, indicating persistent selling without reaching oversold extremes. The MACD on the 4-hour chart is deep in the red zone with widening histogram bars, hinting at strengthening downside momentum. The Stochastic RSI is in oversold territory, though without a crossover, suggesting weakness may extend before a potential bounce.
Adding to the caution, the Ichimoku Cloud shows ADA trending below the Kijun-sen and Tenkan-sen lines, with the price entering a thin but negative cloud span. This reinforces short-term bearish sentiment and raises red flags for bulls unless Cardano quickly reclaims the $0.672–$0.682 pivot area.
From a pattern perspective, the 30-minute and 4-hour charts reveal clear descending channels and failed breakout retests, keeping the pressure intact. The Cardano price volatility is tightening as the asset consolidates below resistance, often a precursor to directional expansion.
If ADA loses the $0.644–$0.650 demand zone, which aligns with a horizontal base and the Bollinger Band’s lower bound, we could see accelerated losses toward $0.625 and possibly $0.60. The Fibonacci retracement from March’s swing low to April’s high also supports this view, placing the 0.618 level near $0.62.
However, if Cardano price manages to defend the current support and produce a bullish divergence on RSI or MACD, a recovery toward $0.672 and $0.688 remains viable. Any break and close above $0.688 would then open room for retests of $0.70 and $0.726—zones that capped previous Cardano price spikes in April.
Ask Aime: "Cardano (ADA) plunges below key support, hinting at potential $0.60 crash?"
The Cardano price update thus points to a narrow inflection zone. Bears dominate below $0.672, while bulls would need a clean close above $0.688 to flip the short-term bias. Until then, ADA’s price remains vulnerable to further weakness, especially if the broader crypto market lacks a fresh catalyst.
