Cardano Faces Key Support Test: Will ADA Drop to $0.53 or Rebound?

• Cardano is testing the 61.8% Fibonacci retracement level, a critical support zone that may decide its next major price movement.
• A breakdown below the 300-day EMA at $0.6645 could accelerate selling pressure, potentially pushing ADA toward the $0.50–$0.55 support area.
• The RSI at 34.42 signals oversold conditions, suggesting a potential bullish reversal if ADA reclaims key levels above $0.68.

Cardano is testing a critical support level, and a drop down towards $0.53 is a possibility unless there is a re-emergence of buying interest. The digital asset is trading in proximity of the 61.8% retrace point, a critical technical point, and is being resisted by the 300-day Exponential Moving Average. If it declines below this, selling momentum is about to escalate, pushing ADA lower in a correcting trend.

Key Support and Resistance Levels

Crypto analyst Ali_charts indicated ADA’s current situation, noting a breakdown below a parallel channel makes a drop down to $0.53 more probable unless it quickly reclaims $0.67.

The 61.8% Fib of $0.6782 is a point of great significance which can guide direction for subsequent action. If it can sustain a close below the 300-period EMA of $0.6645, bearish momentum can escalate, and it can drop as low as levels of $0.60 and the support of $0.50-$0.55. Upwards, a reclamation of $0.70 can give an opportunity for a bounce towards levels of $0.78 (50% Fib level) and $0.89 (38.2% Fib level).

Momentum Indicators Signal Weakness

The Relative Strength Index is now at 34.42, bordering on being in an oversold situation. While this reflects strong selling pressure, a potential bullish reversal can take place when the RSI is greater than 40.

The trendline breakdown and failure to sustain above key moving averages indicate rising bearish sentiment, although a surprise bounce is a possibility in case of buyers stepping in on current support levels.

Markets Outlook 

A continuation above $0.68 can find buying interest, targeting upper resistances. Alternatively, a breakdown below $0.6645 can confirm a continuation lower, as short traders can target lower levels of around $0.55.

Cardano (ADA), as at the time of writing, is trading at a price of $0.6703, a 3.95% increase in the last 24-hour session and an 11.72% depreciation in a week. Cardano’s 24-hour trading volume is currently worth $782,721,262, which is a gauge of active market action as market direction is measured.