Cardano Price Drops 3% as Bearish Trend Intensifies

Cardano (ADA) has experienced a renewed bearish trend, with its price slipping below key support levels. At the time of writing, ADA is trading near $0.6610, having lost over 3% in the past 24 hours. This decline positions ADA at a critical support region, raising concerns about further downside momentum as early June approaches.

ADA's recent performance reflects a broader risk-off sentiment across the altcoin space. On the 30-minute chart, Cardano's price action has broken below a short-term ascending support line, invalidating the recent bullish pennant pattern. A failed retest of the $0.6785 zone has triggered an impulsive breakdown, putting pressure on the $0.6600 support floor. The 4-hour chart shows this move in the context of a larger descending channel, with multiple attempts to reclaim the $0.6950–$0.7050 resistance zone being rejected. This reflects a persistent bearish trend that has extended from May 22 onwards, now nearing the lower boundary of the structure.

Technical oscillators highlight the deteriorating momentum in ADA. The 30-minute RSI stands at 26.47, deeply oversold and suggesting near-term exhaustion, although no bullish divergence is confirmed. The MACD continues to slope downward, with both signal and MACD lines residing below the zero mark, indicating a strong bearish continuation bias. The Stochastic RSI is also scraping bottom levels near 3.18, suggesting any bounce could be technical in nature rather than structural. The Chande Momentum Oscillator reading of -92.82 further validates the heavy selling bias, with no signs of a reversal yet materializing.

The 4-hour Bollinger Bands are significantly widened, a sign of increased Cardano price volatility, with candles hugging the lower band. The 20/50/100/200 EMA cluster between $0.6950 and $0.7375 continues to act as dynamic resistance, with ADA failing to break through this band throughout the last week of May. The 20 EMA ($0.6990) is now far above current prices, underlining how sellers have regained control after the failed bounce toward $0.7150 earlier this week. This technical compression, combined with a Bollinger Band squeeze seen previously, now appears to have resolved to the downside.

From a broader perspective, the weekly Fibonacci retracement levels reveal that Cardano price has now slipped below the 0.618 Fib retracement zone near $0.6768. This is a significant technical development, as the 0.618 level typically acts as a strong bullish defense in trending markets. A weekly close below this threshold could invite further sell-side pressure, targeting the 0.786 retracement around $0.5004. The daily structure reinforces this view, showing ADA breaking beneath the ascending triangle support extending from March 2025. This invalidation, coupled with consistent lower highs, paints a clearly bearish picture unless buyers can reclaim the $0.6900–$0.7050 band with conviction.

The question for investors remains: Why is Cardano price going down today despite a brief uptick earlier this week? Fundamentally, ADA is responding to broader market rotation out of mid-cap altcoins. Technically, the confluence of a failed breakout, EMA rejection, and high selling momentum is weighing heavily. The inability to maintain above key support zones suggests sentiment remains cautious, if not outright bearish. Additionally, inflows into ADA-linked funds have slowed, and network activity data from mid-May has shown flattening growth, which may be contributing to reduced speculative interest.

Given current conditions, Cardano price spikes remain unlikely without a catalyst-driven reversal or a broader crypto rebound. For June 2nd, the immediate support sits at $0.6380, followed by a psychological level at $0.6000 if bearish momentum accelerates. On the upside, resistance remains firm at $0.6780, followed by $0.6950 and $0.7230. Bulls would need a strong daily close above $0.7050 to reverse the short-term trend. Unless ADA reclaims key exponential moving averages and overcomes near-term resistance, the path of least resistance appears tilted downward heading into the weekend.