Cardano (ADA) is facing mounting pressure as bearish sentiment sweeps through the market. After failing to break a key resistance trendline, the asset has turned downward again, revisiting a crucial support level. With ADA trading at $0,523, down 18,11% over the past 24 hours, analysts warn that more downside may be ahead unless a clear reversal emerges.

Technical Indicators Flash Caution

ADA’s price is hovering near the 200-day Exponential Moving Average, a level that has consistently acted as resistance. Analysts suggest that continued rejection at this zone could drive the asset toward the $0,50–$0,44 range. This lower zone is being watched closely as a possible double-bottom formation–typically a bullish reversal signal if confirmed with strong support and rebound volume.

However, ADA’s 3-day Relative Strength Index (RSI) remains above levels historically associated with major market bottoms, indicating that the current downtrend may not have fully exhausted. Until the RSI dips further into oversold territory, analysts remain cautious about calling a true reversal.

Red Moving Average Offers Final Support

A key red moving average–positioned near $0,48–has been highlighted as a final line of defense. This level has provided reliable support in previous market cycles, and a retest could offer a pivotal moment for ADA’s short-term trajectory.

If buyers step in and defend this area, it could set the stage for a powerful rebound toward $1,00–$1,50. But if support fails, the bearish phase could deepen, dragging ADA toward lower lows as macro sentiment and Bitcoin’s price action continue to weigh heavily on altcoins.

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