Cardano (ADA) has recently experienced a strong correction after reaching highs above $1.20, now trading near the $0.70 support zone. With market volatility increasing, ADA’s price structure suggests a critical juncture that could define its trajectory for the next few months.
Risk of Further Decline or Reaching a Bottom?
ADA’s recent price action shows a clear rejection from the $1.20 resistance level, followed by a decline toward the $0.70 region. The break below the previous support near $0.80 indicates bears are in control, yet there are signs that selling pressure could be exhausted. A key factor is the Relative Strength Index (RSI), signaling oversold conditions. Historically, when ADA’s RSI falls below 30, a short-term relief rally often follows. If bulls step in at these levels, ADA could see a strong bounce.
Key Support and Resistance Levels
ADA’s price action has created distinct support and resistance zones crucial for determining its next move. Immediate support is at $0.70, which must hold to avoid further downside toward $0.50, where long-term buyers could be heavily involved. Resistance levels require reclaiming $0.85 for bullish momentum.
Cardano Price Prediction: Rebound or Further Drop?
The RSI indicator on the daily chart signals ADA is oversold, suggesting selling pressure could be reaching exhaustion, making a bounce more likely in the short term. However, oversold conditions do not always guarantee an immediate reversal. If sentiment remains bearish, ADA could stay in the lower range before signs of recovery.
Will ADA bounce back and reclaim its bullish trend, or is a deeper drop inevitable? The next few weeks will be crucial in determining its next major move.
