Cardano price faces selling pressure and struggle to hold key support levels
Cardano trades near critical support amid weak market sentiment
Cardano (ADA) continues to experience significant downward pressure, with the price struggling to sustain above key support levels. The daily chart indicates that ADA is trading within a descending wedge, a formation that historically precedes a breakout. However, for any bullish reversal, ADA must reclaim higher resistance levels.
Strong resistance is observed around $1.02 - $1.25, while critical support lies between $0.55 - $0.60. If the price falls below this zone, further bearish momentum could push ADA lower. The overall market sentiment remains weak, making it crucial for ADA to stay above $0.60 to prevent deeper losses. Until ADA breaks above $0.80 - $0.85, the broader bearish trend persists.
The 4-hour chart confirms ADA's bearish structure, with lower highs and lower lows indicating sustained selling pressure. Multiple failed breakout attempts around $0.75 - $0.80 suggest that resistance in this region remains strong. The immediate resistance is seen around $0.69 - $0.70, while the current support level is positioned between $0.60 - $0.62. If this support is breached, the next strong demand zone lies at $0.55. A breakout above $0.70 could potentially shift momentum in favor of the bulls, but without strong buying pressure, the current trend remains bearish.
Cardano price dynamics (Jan 2025 - Feb 2025) Source: TradingView.
Technical indicators confirm downward pressure
ADA remains below all major moving averages, reinforcing its bearish outlook. The 20 EMA is at $0.69, 50 EMA at $0.72, 100 EMA at $0.75, and 200 EMA at $0.80. Trading below these levels signals continued weakness, and ADA must reclaim at least $0.72+ to gain bullish momentum.
The Relative Strength Index (RSI) at 32.56 suggests ADA is approaching oversold conditions. If RSI falls below 30, a short-term bounce may occur. The Bollinger Bands also show ADA trading near the lower band, indicating it is oversold and could see a temporary rebound towards $0.69 - $0.72. However, the MACD (Moving Average Convergence Divergence) indicator still reflects bearish momentum, with the MACD line at -0.02657 and the signal line at -0.02511. A bullish crossover in upcoming sessions could indicate a sentiment shift, but confirmation is needed before expecting a sustained recovery.
Potential scenarios and trading strategy
If ADA fails to hold $0.60, it is likely to continue its downward movement toward $0.55, and breaking below this level could extend the decline to $0.50 or lower. On the other hand, if ADA manages to reclaim $0.72+, it would serve as a strong bullish signal. A breakout beyond $0.75 - $0.80 would further validate a shift in momentum and could push the price toward $0.85+.
For traders, short-term strategies might involve looking for bounce opportunities near $0.60 with a target of $0.70, while breakout traders should wait for confirmation above $0.72 before entering long positions. A stop-loss below $0.58 is advisable to minimize risk.
Final outlook: ADA needs to reclaim $0.72+ to confirm bullish momentum
Cardano remains in a bearish phase, but RSI nearing oversold levels suggests a potential relief bounce. However, unless ADA breaks above $0.72 - $0.75, it remains trapped in a broader downtrend. Holding above $0.60 is critical for any recovery, and traders should exercise caution until stronger signals emerge.
As previously discussed ADA faces downward pressure with $0.60 as a critical support level. Breaking above $0.72 - $0.75 could signal a reversal.
