Cardano Price Drops 2% as Bullish Momentum Fades

Cardano's price is currently hovering around $0.748, showing a slight decline after encountering resistance above $0.76. Despite a recent rebound from levels below $0.72, the momentum appears to be weakening as bulls struggle to maintain control near short-term trendline resistance. The overall structure suggests a sideways movement with intermittent sell pressure from overhead resistance zones.

Cardano's recent rally seems to be losing steam near key rejection zones, raising concerns about a potential short-term pullback. Multiple indicators are flashing warning signs, and traders are closely monitoring key support levels to gauge the next price movement.

The current price action of Cardano reflects a loss of bullish momentum after an early push toward $0.765 was met with selling pressure. On the 30-minute and 4-hour charts, ADA is trading just above a key horizontal support near $0.735, a level that previously acted as a springboard for bullish continuation. However, the red supply zone between $0.758 and $0.765 remains firm, and this rejection has been reinforced by a rising wedge breakdown visible on lower timeframes, indicating that buyers are failing to maintain momentum at higher levels.

The Relative Strength Index (RSI) on the 30-minute timeframe is declining from 63.66 to 48.48, indicating waning bullish momentum. Simultaneously, the MACD histogram has slipped into the red with a fresh bearish crossover, further supporting the idea that downside pressure is increasing. On the Stochastic RSI, values have plunged to 3.24 and 8.78, suggesting that Cardano price volatility could intensify if this oversold condition leads to panic selling rather than a recovery. The Chande Momentum Oscillator also reflects a value of -32.45, confirming a shift toward short-term bearish momentum.

On the 4-hour chart, the Cardano price has struggled to break above the 100-EMA and 200-EMA, which currently sit at $0.749 and $0.755 respectively. Price is being compressed between these EMAs and the upper Bollinger Band, creating a narrow channel. Bollinger Bands are tightening, a common precursor to a directional breakout. However, given the rejection at the top and bearish divergence on momentum indicators, the probability currently favors a minor correction rather than a breakout.

The weekly Fibonacci retracement from the 2024 low to 2025 high continues to provide key insight into ADA’s macro structure. The 0.5 level at $0.80085 has not been convincingly breached, and the current consolidation appears locked below that threshold. Any failed attempt to break above $0.78–$0.80 could trigger renewed downside pressure toward the 0.618 Fib level near $0.676.

The current decline in Cardano's price can be attributed to a combination of technical exhaustion and failing momentum. The strong price spikes earlier this month were not backed by sustained volume, causing the rally to lose steam near historical resistance zones. Additionally, macro sentiment across altcoins remains cautious ahead of upcoming regulatory events, prompting short-term profit-taking and adding to the sell pressure currently weighing on ADA.

As of May 22, ADA is likely to remain under pressure unless bulls reclaim the $0.758–$0.765 zone. A break above this could open a path toward $0.79–$0.80. However, failure to hold $0.735 could trigger a drop toward $0.717, followed by stronger support near $0.705. The next 24 hours will be crucial in determining whether ADA can hold its ascending support trendline or succumb to a broader market pullback.