The crypto market experienced another downturn after a brief recovery last week. Bitcoin ($BTC) fell from $114,000 back into the $107K–109K range, diminishing the optimism that the bear market was nearing its end. This resurgence in volatility led to declines in major altcoins, with Cardano (ADA) losing nearly 9% over the past seven days.
The Bitcoin chart illustrates a swift shift in momentum from bullish to bearish. After failing to sustain levels above $114K, BTC broke through several short-term support levels. The Relative Strength Index (RSI) dropped below 40, and the Moving Average Convergence Divergence (MACD) showed a bearish crossover, both indicating a loss of upward strength.
Until Bitcoin reclaims the $110K mark with significant trading volume, riskier assets like Cardano are expected to remain under pressure.
Cardano Technical Analysis: Key Levels to Watch
The Cardano (ADA/USD) chart displays a similar technical pattern. Following a temporary bounce near $0.65, ADA retreated to $0.628, positioning itself just above a critical support level at $0.62.
- •Support Zone: $0.62 – This is a significant horizontal level that has consistently acted as a floor for ADA's price since mid-October.
- •Resistance Zone: $0.71 – This acts as a strong ceiling, having capped the price during the last attempt at a rally.
- •RSI: Currently at 36.6, indicating that ADA is approaching oversold territory but has not yet reached levels typically associated with a strong reversal.
- •MACD: The MACD is bearish, with the signal line widening below the zero line, confirming short-term downward pressure on ADA's price.
The absence of clear bullish divergence suggests that buyers are not yet entering the market with strong conviction. A decisive break below the $0.62 support level could potentially trigger another sell-off, pushing the price towards $0.58. Conversely, a rebound above $0.65 might help regain momentum and target the $0.71 resistance.
Cardano Price Prediction: Bull vs. Bear Scenarios
🔴 Bearish Case (Crash to $0.62 or Lower)
If Bitcoin continues to face difficulties trading below $110K, Cardano could retest its key support level at $0.62. A failure to hold this level might lead to a further decline, potentially reaching $0.58 or even $0.55, particularly if the overall sentiment in the cryptocurrency market deteriorates further. Short-term traders should exercise caution regarding potential false bounces, which are common patterns when the RSI hovers around the 35–40 range.
🟢 Bullish Case (Rebound to $0.71)
Should Bitcoin stabilize and global market sentiment improve, Cardano has a reasonable chance to rebound towards the $0.70–0.71 range. This price zone aligns with the 50-day moving average and previously acted as resistance, making it a logical target for bullish traders. For this bullish scenario to be confirmed, ADA would need to achieve a daily closing price above $0.65, accompanied by an increase in trading volume.
Cardano Future: Market Outlook
The immediate future of Cardano's price is likely to be heavily influenced by Bitcoin's ability to regain upward momentum. Without strong leadership from BTC, altcoins such as Cardano will probably continue to follow the general direction of the broader market. Nevertheless, Cardano's long-term fundamental strengths remain robust, particularly with ongoing ecosystem upgrades and the expansion of decentralized finance (DeFi) integrations on the network.
At present, traders are advised to closely monitor the $0.62–0.65 price range. A clear breakout above this zone or a decisive breakdown below it will likely dictate Cardano's next significant price movement.