- ADA fell nearly 15% weekly amid rising Middle East tensions following U.S. airstrikes on Iran, reflecting global investor caution.
- ADA is testing key support at $0.514–$0.56 with a potential double-bottom reversal; failure could lead to a drop toward $0.3299.
- RSI suggests mild bullish momentum, while MACD shows indecision—no strong trend confirmed yet.
Cardano (ADA) recorded a notable dip in value this week, dropping nearly 15% as geopolitical tensions escalated. It is currently trading at $0.5474, down 1.3% in the last 24 hours.
Analysts blame the current price correction on high tensions in the Middle East, particularly after a recent U.S. military attack on Iran. This sudden downtrend in crypto markets represents wider investor hesitancy. ADA’s price movement suggests a reactionary pattern to unfolding global events, not isolated trading behavior.
ADA Tests Key Support Amid Reversal Hopes
ADA traded within a narrow 24-hour range, with support set at $0.514 and resistance near $0.5563. Despite brief intraday recoveries, sellers maintained pressure around the upper boundary.
According to analyst VipRoseTr, Cardano (ADA) is currently testing critical weekly support around $0.56, as the chart indicates a potential double-bottom pattern. This setup could signal a bullish reversal if buyers defend the support zone. A confirmed rebound may open the path toward targets at $0.9945, $1.2373, and $1.5268.
However, failure to hold this level may shift momentum sharply downward. Then ADA can fall back to $0.3299, a critical lower support. Price action in the next fortnight is critical, with both upside and downside channels well delineated.
Technical Indicators Show Mixed Reaction
Technical indicators offered mixed signals over the period observed. The Relative Strength Index stood at 55.49, while the average sat at 46.66. This suggests mild bullish strength, though momentum remains subdued. RSI values fluctuate within a neutral zone, with no sharp movement into oversold or overbought territories.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator showed minor shifts. The latest MACD values indicate moderate momentum swings, although no significant trend formation emerged.
Price Movement Reacts to External Geopolitical Events
Cardano’s recent price activity demonstrates the broader crypto market’s exposure to geopolitical risks. The sudden price drop occurred at the same time as U.S. airstrikes against Iran, elevating global risk aversion. Investors have a tendency to leave risk assets during such moments, impacting digital assets like ADA.
Additionally, ADA’s BTC pair showed a modest gain of 0.8%, trading at 0.055370 BTC, demonstrating relative outperformance versus Bitcoin. However, despite this pairing gain, the overall trend remains downward, consistent with market-wide de-risking.
In short, the price action of ADA is a technical and geopolitical interplay. In the short-term, the support level at 0.514 is still vital, and the resistance level at 0.5563 is holding back the breakout.
