Cardano (ADA) recently faced a significant decline, dropping below the descending resistance line after reaching a peak of $0.69 in December 2023. Despite breaking above the short-term diagonal support level, ADA continues to trade above the long-term horizontal support level. However, the attempt to overcome the descending resistance has not been successful, and the ADA price is now approaching the point where the resistance line intersects with the horizontal support area.

Technical analysis shows that ADA has been under the descending trendline resistance since December 2023, reaching a low of $0.45 on January 23, 2024. The daily Relative Strength Index (RSI) provides mixed signals, indicating growth but remaining below 50, suggesting trend uncertainty.

Short-term analysis of the two-hour chart also confirms a bearish trend for ADA, with a recent drop in the asset's price below the ascending support line, which may indicate the end of the uptrend. If Cardano continues to decline, its price could decrease by another 5% to the nearest support level at $0.47. However, a return to the ascending support line may initiate a 6% rise to the next resistance level at $0.53.