Cardano (ADA) has experienced significant selling pressure, causing concern among investors. After reaching highs above $1.20, the current price is around $0.617. The question is whether this is a temporary correction before recovery or the start of a deeper decline.
Current Market Situation
Cardano (ADA) has been struggling with bearish momentum after a strong rally that saw it reach highs above $1.20. Currently, the price is trading around $0.617, showing a sharp decline in recent weeks. With the price now approaching critical support levels, investors are left wondering whether ADA is set for a recovery or if it will continue to spiral downwards.
Key Support and Resistance Levels
One of the most crucial levels to watch is the $0.60 support zone. This level has played a significant role in the past, acting as a strong base before major price recoveries. If ADA manages to hold above this level, it could see a bounce, leading to a short-term recovery. However, if bears push the price below this mark, the next major support lies around $0.40-$0.45, and failing that, a retest of the $0.20 region is possible.
Technical Indicators and Their Signs
The Relative Strength Index (RSI) on the daily chart is currently at 26.66, which is well into the oversold territory. Typically, an RSI below 30 suggests that the asset is undervalued, and a reversal could be imminent. However, in strong downtrends, assets can remain oversold for extended periods before recovering. If RSI starts showing bullish divergence—where price makes lower lows, but RSI begins to rise—this could indicate that selling pressure is weakening, and a reversal might be on the horizon. Until then, traders should be cautious about assuming the downtrend is over.
Cardano is currently facing significant bearish pressure, and the $0.60 support level will be crucial in determining its next move. A bounce from here could see a recovery towards $0.80 and beyond. However, a breakdown below this level could open the doors for further downside toward $0.40 or even $0.20. While a complete crash to zero is highly unlikely, ADA remains in a critical zone where bulls must step in to prevent a further downtrend.
