- Cardano price drops for second day after reversing from key upside hurdle.
- 50-day SMA, three-month-old descending trend line mark $0.7250 as crucial resistance.
- RSI and MACD suggest further decline toward June’s low.
Cardano (ADA/USD) drops to a new intraday low around $0.6830 during Thursday’s European session, marking its second consecutive day of decline after failing to break a key resistance level.
The inability to surpass the convergence of the 50-day Simple Moving Average (SMA) and a three-month-old descending trend line, combined with a near-50.00 prints of the 14-day Relative Strength Index (RSI) and bearish signals from the Moving Average Convergence and Divergence (MACD) indicator, continue to pressure the ADA/USD pair.
ADA/USD: Daily chart points to further downside
Source: Tradingview
Failure to break the 50-day SMA and the convergence of a multi-month-old trend line, along with trend-favoring signals from the RSI and MACD, suggest further downside for the ADA/USD pair. This comes after a reversal from the weekly peak, with room for further declines before reaching the next support levels.
Immediate support for ADA sellers is around the $0.6500 round figure, followed by the monthly low near $0.6190. However, pushing past $0.6190 may prove challenging, as the $0.6000 psychological level and a seven-month-old horizontal support zone around $0.5100-$0.5200 could act as strong barriers. A break below these could revisit the November 2024 lows near $0.3200.
On the other hand, a recovery for ADA remains challenging beneath the resistance confluence around $0.7250. Should the buyers clear this, the next targets could be the 200-day SMA at $0.8195 and a downward-sloping trend line from late 2024, which sits near $0.9945. It’s important to note that the $1.0000 psychological level acts as an additional upside resistance.
ADA/USD: Four-Hour chart points to further downside
Source: Tradingview
On the 4-hour chart, ADA/USD has immediate support at the 50-bar SMA near $0.6790 and the 61.8% Fibonacci retracement of the April–May rally around $0.6450. Below that, the monthly low at $0.6190 comes into focus, with the 78.6% Fibonacci level at $0.5860 acting as an extra downside barrier.
Alternatively, for bulls to take control, ADA must break above the 200-bar SMA at $0.7350. Even then, a falling resistance line from May, near $0.7980, will be a key test before aiming for higher levels on the daily chart.
In summary, ADA/USD is leaning toward retesting its monthly low, but deeper losses may be tough to extend.
