- ADA must reclaim $0.7115 to regain bullish momentum and challenge the $0.730 zone.
- Rising trading volume and MACD crossover hint at a possible short-term recovery.
- Support at $0.690 remains crucial to prevent a deeper correction toward $0.670.
Cardano (ADA) faced notable selling pressure as it approached the end of April, with its price showing signs of struggle. After briefly rallying toward $0.717, ADA failed to maintain higher levels and saw a sharp decline.
Consequently, the price fell below $0.690 before recovering slightly to $0.7012 at the time of writing. Despite the downward move, technical indicators suggest that ADA still has potential for a bullish reversal if critical levels are reclaimed. Besides, increased trading activity and moderately strong liquidity ratios point toward sustained market interest.
Price Trend Signals Weakness
ADA’s price action on the daily chart revealed a recent local top formation near $0.717, followed by strong rejection. This sharp dip pushed the token below the $0.690 zone, where temporary support emerged. However, even after a minor bounce, the price struggled to reclaim its earlier highs.
Significantly, the trading volume rose by over 27% during this corrective phase, suggesting intensified market engagement despite the pullback. Moreover, the vol/mkt cap ratio of 3.26% indicates that liquidity remains moderate, providing traders with enough flexibility for quick position adjustments.
Support Levels That Could Prevent Deeper Correction
Immediate support lies at $0.690, which recently acted as a cushion during the intraday dip. If selling pressure intensifies, $0.685 could be tested next, a zone known for historical demand.
Additionally, $0.670 stands as a more robust support, having previously contained broader consolidations. Hence, holding above these critical supports could be vital for ADA to avoid extended losses. Maintaining these levels would also preserve the short-term bullish structure on higher time frames.
Resistance Levels That Bulls Must Conquer to Regain Momentum
The session’s opening price of $0.7115 now serves as the first resistance barrier. Breaking this level could reignite bullish momentum toward the $0.717 peak. Moreover, surpassing $0.717 would open the path toward $0.730, a psychological level with heavier historical selling pressure.
Besides, reclaiming $0.730 would signal a stronger shift in market sentiment in favor of buyers. However, failure to clear these resistances could keep ADA trapped within a narrow trading range.
Technical Indicators Suggest Mildly Bullish Bias
Looking at the technical indicators, the MACD has shown a bullish crossover, with the MACD line now above the Signal line. This indicates that bullish momentum is beginning to build. Additionally, the MACD histogram is also showing increasing momentum, supporting the possibility of a price push upwards.
On the RSI front, the indicator sits at 57.10, which is considered neutral to mildly bullish. This suggests that ADA has room to move upward before reaching overbought territory, which occurs when the RSI exceeds 70.
