- Cardano extends pullback from 14-day EMA, fades rebound from key support zone.
- RSI, MACD signals gradual downside but ADA bears need strong reason to break $0.5100.
- ADA/USD bulls need $0.6420 breakout to re-enter.
Cardano (ADA/USD) remains under pressure for the second consecutive day, down 1.70% intraday around $0.5490 during Tuesday’s U.S. trading session.
In doing so, the ADA/USD pair is defending the previous day’s pullback from the 14-day Exponential Moving Average (EMA), while fading the late June rebound from a crucial support zone that has been holding off bears since early November 2024. Alongside the pullback from the key EMA and the fading bounce off crucial support, the downbeat conditions of the 14-day Relative Strength Index (RSI) encourage ADA sellers. However, the key support level and bullish Moving Average Convergence Divergence (MACD) signals seem to challenge the quote’s further downside.
ADA/USD: Daily chart points to limited downside
Source: TradingView
With the 14-day RSI hovering near the 30.00 oversold level and the MACD showing bullish momentum, ADA/USD sellers may retain control. However, pushing below the $0.5125–$0.5100 support zone — which includes lows seen since early November 2024 — could prove difficult.
Short-term support levels to watch include the previous weekly low at $0.5457 and the 78.6% Fibonacci retracement of the November–December 2024 upside, near $0.5330.
In the less likely scenario of a confirmed break below the $0.5100 key support, attention would shift toward the September 2024 high at $0.4150 and the late 2024 bottom near $0.3200.
On the upside, immediate resistance lies at the 14-day EMA around $0.5815. A break above this could lift ADA/USD toward a key confluence of the 50-day EMA and a four-month-old descending trendline, near $0.6420.
If ADA bulls manage to clear the $0.6420 barrier, further targets will include June’s high at $0.7310, followed by the May peaks near $0.8410 and $0.8630.
ADA/USD: Four-Hour chart seems more bearish
Source: TradingView
Unlike the daily chart—where the 14-day RSI is near the oversold boundary—the four-hour chart shows a neutral RSI and mixed signals from the MACD, indicating continued downside pressure.
With that setup, the previous week’s low at $0.5457 and the key $0.5100 support zone appear within reach. A break below these levels would expose the downside targets highlighted on the daily chart.
Alternatively, the 100-bar EMA near $0.5880 and a month-long previous support-turned-resistance trendline around $0.6000 serve as immediate barriers.
Beyond that, the 200-bar EMA and a descending resistance line from late May—near $0.6225 and $0.6280, respectively—will act as the final line of defense for Cardano bears. A successful break above these would hand control back to the bulls, opening the path toward the higher resistance levels mentioned in the daily timeframe.
Overall, Cardano (ADA/USD) looks poised to retest its key downside support, though a deeper slide below that appears challenging in the current setup.
