ADA breaks below support after heavy selling | Credit: Hameem Sarwar
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Key Takeaways
ADA hits multi-month lows with strong bearish momentum signals.
Weekly EMA overhead reinforces a persistent bearish market structure.
The next major support lies near $0.23, but will bulls prevent a decline?
Cardano (ADA) price has dropped to multi-month lows, raising fresh doubts about whether the market is entering a deeper downturn.
The steep decline has shaken trader confidence, yet some indicators suggest ADA’s price may be nearing an exhaustion point.
The big question now is whether this move signals a freefall or the early signs of a potential bottom.
Cardano Bleeds
On the daily chart, ADA’s Relative Strength Index (RSI) indicates that the asset has taken a deep dive with no signs of reversal. The RSI sits at 29.49 and is heading toward the oversold threshold of 20.
This suggests that bears are dominant in the market, and selling pressure remains strong.
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Similarly, the Bull Bear Power (BBP) indicator registers a negative value of -0.12, signaling that bearish momentum continues to shape market sentiment.
The alignment of these indicators confirms that sellers hold firm control, and any relief rallies could remain shallow unless buying pressure intensifies. If this trend continues, ADA could slide further into a deeper correction.
If bearish momentum persists, ADA’s price could fall toward its immediate support zone at $0.32.
However, the point of interest that could determine this lies between the $0.60, $0.73, and $0.93 resistance lines.
On the weekly chart, the Exponential Moving Average (EMA) shows continued bearish pressure. The 20-day EMA sits above the candles, acting as a key resistance zone.
In such conditions, upward price movements face intense selling pressure, limiting ADA’s short-term rebounds. Sellers remain in control, and the token appears poised for further declines.
The Awesome Oscillator (AO) also remains in negative territory, having printed multiple red histogram bars. At the time of writing, the AO sits at -0.10, reflecting strengthening bearish momentum.
Looking at Fibonacci retracement levels, ADA’s price appears to be in free fall, trading below the 0.236 Fib level. At press time, the token is trading below its multimonth low of $0.47, a level that has historically acted as support.
Trading at $0.46, ADA appears to be heading toward its next support zone at $0.32. Should bearish pressure persist, the token could extend its decline toward the Fib level at $0.23.
On the other hand, if ADA manages to reverse and climb toward its key resistance at $0.74 above the 0.382 Fib level, the asset could experience a meaningful rebound.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
