The value of (ADA) has declined by around 30% since reaching its peak last month. ADA’s attempt to surpass the significant resistance level of $0.555 was unsuccessful, resulting in a potential continuation of its decline in the near future.
Cardano is currently trading within a falling price channel as its recent downturn continues. Analysts warn that the cryptocurrency may yet decrease by an additional 12–20% if negative technical indicators are more significant than the positive change in mood.
Cardano recently encountered resistance at the Golden Ratio level (1.618 Fibonacci extension) of $0.555, but was unable to surpass it. This indicates that buyers currently do not possess sufficient strength to reverse the ongoing retracement that began when ADA reached its peak of approximately $0.58 in early January.
If Cardano fails to achieve a convincing daily close above $0.555 and establish it as a support level, there is a possibility that prices may continue to decline. The cryptocurrency’s 200-day moving average, which is approximately $0.425, is the significant objective for further down. A group of Fibonacci support levels ranging from $0.39 to $0.42 may potentially halt the downward movement.
Can Cardano decline further?
Cardano’s outlook is unclear due to conflicting technical signals on the daily chart. The token’s short-term moving averages show a positive crossover, but its MACD momentum indicator is approaching a negative signal. The Relative Strength Index (RSI) is currently in a neutral range following the recent unsuccessful attempt to break out.
However, losses within the 4-hour timeframe have been limited thus far because to the significant support level of the Golden Ratio at approximately $0.48. Bulls seek to identify that specific zone in order to initiate an upward reversal towards the most recent peak levels. However, in the event of failure, this region represents the last line of defense before a more significant decline towards the 200-day average.
Consequently, although Cardano is currently seeing technical difficulties, its drop over many weeks may stabilize soon if the underlying bullish sentiment regains dominance. However, ADA must surpass the crucial resistance level of $0.555 and reach the previous highs of approximately $0.58 in order to successfully break out of its recent downward trend.
