The News Crypto - The price of Cardano (ADA) has tumbled about 30% since hitting highs last month. And after being rejected again near a key $0.555 resistance level, ADA threatens to extend its downward slide over the short term.
Cardano now trades within the confines of a falling price channel as its recent correction persists. Analysts caution the cryptocurrency could still drop another 12–20% should bearish technical factors outweigh improving sentiment.
Recently, Cardano failed to overcome resistance around the Golden Ratio level (1.618 Fibonacci extension) at $0.555. This signals buyers still lack enough strength to reverse the retracement underway since ADA topped out around $0.58 in early January.
Unless Cardano can soon close decisively above $0.555 on a daily timeframe to flip it to support, gravity may drag prices further south. The crypto asset’s 200-day moving average near $0.425 represents the next major downside target. Below there, a cluster of Fib support between $0.39 and $0.42 could stabilize the decline.
Can Cardano decline further?
On the daily chart, conflicting technical signals muddle Cardano’s outlook. While the token’s short-term moving averages maintain a bullish crossover, its MACD momentum indicator nears a bearish signal. Its Relative Strength Index also hovers in neutral territory after the latest failed breakout attempt.That said, a crucial Golden Ratio support level around $0.48 has so far kept losses in check over the 4-hour timeframe. Bulls look for that zone to spark an upside reversal back toward recent highs. But if it fails, this area marks the final defense before a steeper fall toward the 200-day average.
Therefore, while Cardano faces technical headwinds now, its multi-week correction may find a floor soon if underlying bulls reassert control. But ADA will need to close back above the pivotal $0.555 resistance and highs around $0.58 to convincingly exit its short-term downtrend.
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This article was originally published on thenewscrypto.com
