ADA Price Prediction: Cardano Faces Selling Pressure, Tests $0.70 Support

Cardano's price has been under heavy selling pressure in recent market sessions. The cryptocurrency has posted three straight days of losses, bringing its weekly decline to around 40%.

Cardano's price has come under heavy selling pressure in recent market sessions. The cryptocurrency has posted three straight days of losses, bringing its weekly decline to around 40%.

On Thursday, another 5% drop was seen before ADA found temporary balance at the $0.70 mark. This price level is now providing crucial support for the struggling digital asset.

The technical picture for Cardano has deteriorated over the past week, with multiple indicators now positioning for continued bearish momentum in the short term.

Most concerning for bulls is the recent formation of a death cross pattern. This occurs when shorter-term moving averages cross below longer-term ones, typically signaling strengthening downward pressure.

In the case of Cardano, the 50-day simple moving average (SMA) has moved below the 200-day SMA on the daily chart. At the time of writing, the 50-day SMA is providing resistance at the $0.7050 level.

MACD Shifts to Bearish

Adding to the negative outlook is the positioning of the MACD indicator. The MACD line has moved below the signal line, confirming the shift toward bearish momentum in recent sessions.

On the 4-hour chart, an immediate bearish trend line is emerging from the recent highs, posing another hurdle for any potential recovery attempts.

However, broader economic data has shown some encouraging trends. Recent U.S. inflation reports have come in better than expected, with both CPI and PPI showing positive developments.

These inflation readings have dramatically increased expectations for a pause in Federal Reserve rate hikes. Current market data from CME Group suggests a 99% chance the Fed will keep rates unchanged at its March 21 meeting.

But while good for stocks, this economic backdrop may create new concerns for crypto prices. Many analysts believe lower inflation figures may give the administration more room to maintain or even increase trade tariffs.

This fear is being reflected in prediction markets, where the odds of tariff reductions have dropped sharply. Polymarket data shows an 18% decline in the probability of Canadian tariffs being lifted before May 2025.

The prospect of extended trade tensions is likely prompting many investors to reduce their crypto exposure. Risk assets like Cardano have been hit hard as market participants become more cautious.

Without any positive project-specific news, ADA has struggled to attract buyers. This contrasts with some other major cryptocurrencies that have found support from favorable developments.

For example, Binance Coin has managed to stay above the $573 price as rumors of the Trump family acquiring a stake in Binance continue to circulate.

RBI’s role in crypto ban

Meanwhile, XRP has found support at the $2.20 level following reports that Binance is planning to apply for a crypto regulatory license in Dubai’s DMCC free zone.

Key Cardano Price Levels to Watch

Looking at key price levels, Cardano faces immediate resistance at the 50-hour SMA, which is currently providing resistance at the $0.7050.

Beyond this, the $0.7520 level marks the 61.8% Fibonacci retracement of the recent downward move from $0.8170 to $0.6495. A stronger resistance is anticipated at the $0.7750 price point. Only a decisive break and close above this level could signal a potential trend reversal and pave the way toward the $0.80 or even $0.85 price ranges.

On the support side, the immediate floor is seen at the 100-hour SMA at $0.6880. If this support gives way, then a retest of the recent low around $0.65 seems likely, with further support zones at $0.635 and $0.62.

However, some analysts are now warning of a possible test of the $0.50 level. This price point, last reached in late 2023, would mark a major extension of the current downtrend.

Recent price action follows a failed attempt by Cardano to reclaim the $1 mark earlier in the week. This rejection has further contributed to the bearish sentiment surrounding the cryptocurrency.

Political factors are also impacting ADA and the broader crypto market. There are increasing concerns that proposed crypto initiatives, such as President Biden’s funding request for $38 billion to expand the Paycheck Protection Program and create a new program to provide paid leave, might face difficulties in securing the necessary funding from Congress.

Moreover, there is speculation about the difficulties that might arise in obtaining congressional approval for the crypto strategic reserve bill, despite bipartisan support for President Biden’s new Paycheck Protection Program.

For a meaningful recovery, Cardano would need to first regain ground above the 200-3hour SMA at $0.73. This move could potentially trigger a short-term reversal and allow bulls to challenge higher resistance levels. A sustained break above the