Key Insights:
- ADA holds a critical support zone, but a drop below $0.276 could trigger deeper losses fast.
- The bullish engulfing candle on the 12H chart sparks hopes for bounce, but confirmation is lacking.
- Weekly indicators stay bearish, with RSI near oversold and MACD showing continued downside momentum.
Cardano (ADA) was trading around $0.3523 and remains above a key support level near $0.345, which corresponds to the 78.6% Fibonacci retracement. This area, extending down to $0.313, has served as a support zone in past market cycles. The price continues to trade within this range, suggesting some buyers are still active.
Despite recent downward pressure, ADA has not yet breached the $0.276 level. This price point is considered an important threshold. A break below it could shift the trend further downward and may lead to deeper losses. Holding above it keeps the possibility open for a short-term recovery.
Weekly Trend Shows Persistent Weakness
On the weekly chart, ADA has been moving lower for several consecutive weeks. The current price reflects a 3.7% drop since the start of the week. Price action remains soft, and the chart shows no clear signs of trend reversal.
Momentum indicators also suggest continued weakness. The RSI is hovering near 31.48, which is close to oversold levels. While this level often attracts attention, there is no clear sign of buying strength yet. The MACD remains in negative territory, and the signal line continues to track above the MACD line. Though the histogram bars are beginning to shrink, that alone is not enough to confirm any shift in momentum.
Source: TradingViewShort-Term Pattern Suggests Possible Bounce
A recent 12-hour candlestick shows a bullish engulfing formation. This occurs when a green candle fully overtakes the previous red candle’s range. The move followed a string of red candles and formed near short-term support, which may indicate a potential bounce.
For this pattern to carry weight, price needs to hold above $0.35 and continue to move higher in the next sessions. Without confirmation, this may only be a brief pause in the broader downtrend.
Current Status and Market Behavior
At the time of writing, Cardano was priced at $0.3523. The 24-hour trading volume is around $399 million. Over the past 24 hours, the price has moved just 0.03%, while the past 7 days show a 5.7% decline.
Market participants are closely watching the $0.276 support level. It marks the last key zone before ADA could revisit lower price levels. Until then, the price remains within a wide support band, with short-term recovery still possible — but not yet confirmed.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Source: https://coincu.com/analysis/ada-near-breaking-point/
