Cardano (ADA) has shown signs of instability in recent days, facing a strong support level at $0.50 amidst high volatility, causing trader concerns.
Current Price Dynamics of Cardano
Recent price fluctuations led Cardano to a low of $0.516. However, the cryptocurrency slightly recovered to $0.548, with continued selling pressure limiting upward attempts. ADA now trades just above the support range of $0.50–$0.52, aligning with the 0.786 Fibonacci level on the weekly chart. This level historically serves as a turning point signaling either a recovery or deeper losses.
Technical Indicators Overview
Short-term charts reveal complex price behavior marked by smart money signals such as 'Break of Structure' and 'Change of Character.' These patterns emerge around supply zones at $0.58, $0.63, and $0.66. Technical indicators remain deeply bearish, with narrow Bollinger Bands on the 4-hour chart indicating price struggles at the mid-band.
Future of Cardano: Possible Scenarios
It is crucial to note that if bulls fail to defend the $0.50 level, ADA could quickly revisit $0.475 and possibly fall towards the $0.42–$0.45 demand area. However, if the token reclaims a price of $0.561 with volume support, it may attempt to break out above $0.622.
Cardano stands at a crucial junction, and its future hinges on performance around the $0.50 level in the coming days.