Cardano price tests key support at $0.72 amid bearish momentum
Cardano price under pressure at $0.722, testing key support levels ahead of a critical decision
Cardano (ADA) is currently trading near $0.722, under pressure after falling below key exponential moving averages (EMA) and trendline support. This marks a shift in momentum toward the bears, with price action showing resistance at $0.765.
ADA is now testing critical support near $0.720, and if this level fails to hold, it could see a deeper pullback toward $0.6745, the 0.618 Fibonacci retracement level on the weekly chart.Cardano’s price faced a setback following a double-top formation near $0.765, with a subsequent breakdown below the rising wedge support signaling a shift to bearish sentiment. On the 4-hour chart, ADA is now trading below the 50 EMA, 100 EMA, and is testing the 200 EMA at $0.7271.
This underscores the weakening short-term trend. A failure to close above the 0.5 Fibonacci level at $0.8005 and continued price drift towards the $0.6745 zone could confirm further downside pressure.
Cardano price dynamics (April 2025 - May 2025) Source: TradingView.
Technical indicators reflect weakness, downside risks remain
The technical indicators on shorter timeframes are also signaling weakness. The Relative Strength Index (RSI) on the 30-minute chart has dipped to 39.57, showing that bullish momentum is weak, with no clear signs of reversal. The MACD has entered negative territory, confirming a bearish crossover and building downward momentum. This suggests that sellers are taking control unless a strong bounce with volume emerges soon.
Bollinger Bands on the 4-hour chart are widening, indicating increasing volatility. The price is currently hugging the lower band, with weak bullish follow-through. The Ichimoku Cloud setup on the 30-minute chart also reflects a bearish outlook, with price trading below both the Tenkan-Sen and Kijun-Sen, while the Chikou Span trails behind the price action, signaling potential further downside.
Key support levels and outlook for May 16
The primary support for ADA now lies at $0.7200. A breakdown below this level could open the path toward $0.6745 and, if bearish pressure persists, down to $0.64. On the upside, ADA must reclaim $0.7300–$0.7350 to signal a potential recovery. For bulls to regain control, the price needs to break above $0.7650 and ultimately retest $0.8150, where sellers previously capped the rally.
As previously discussed, Cardano remains under pressure from both a structural and momentum standpoint. If the $0.720 support zone holds, there may be a chance for a recovery, but failing to hold this level will likely lead to further declines, with critical levels at $0.6745 and $0.64 in focus.
