Cardano (ADA) Price Struggles Below Key Levels as Market Correction Raises Questions

Over the past 24 hours, ADA reached an intraday high of $1.099 USD and a low of $0.964891 USD. This volatility prompts the question: is this a healthy market correction or an indication that bullish momentum is waning?

Cardano (ADA) price dropped below a crucial support level on Monday, sparking concerns about a potential shift in bullish momentum.

The token fell short of holding its position above $1.150 and dropped further, trading below $1.055 and the 100-hourly simple moving average (SMA). A bearish trend line also emerged, offering resistance around $1.040.

During the downturn, ADA briefly dipped below the $1.00 mark, recording a low of $0.9615 before recovering slightly.

However, key resistance remained at $1.0250, aligning with the 50% Fibonacci retracement level of its recent decline from the swing high of $1.160 to the recent low of $0.9615.

If Cardano price manages to close above the Fib level and the 100-SMA, it could shift the trend positively, potentially testing resistance levels at $1.088 and Fib extension levels above it.

Cardano (ADA) price chart showcasing Fib retracement levels (HT: FibbonaccisLevels)

Cardano price dropped significantly over the past week, losing nearly 12% in value.

The sell-off occurred as ADA price faced strong overhead pressure at $1.160, where it encountered Fib extensions and the upper Bollinger Band.

After failing to breach the resistance, the token encountered difficulties in sustaining support at $1.088, Fib extensions, and the lower Bollinger Band, leading to further price declines.

As a result, ADA price dropped below the Bollinger Bands, indicating a potential shift in momentum.

Technical indicators also pointed toward a possible bearish trend, with the moving average convergence divergence (MACD) line crossing below the signal line in the negative zone.

Additionally, the relative strength index (RSI) fell below the 50-neutral mark, suggesting a bearish bias among traders.

Cardano (ADA) price chart displaying Bollinger Bands, Fib extensions, and moving averages (HT: FibbonaccisLevels)

Cardano price action faced challenges as it failed to hold support at $1.150, setting the stage for further price declines.

The token encountered difficulties in sustaining momentum, despite attempts to recover and traders remained hesitant to fully commit to buying pressure.

As a result, ADA price dropped below the Fib level and the 100-SMA, facing a crucial test at $1.00.

However, a slight recovery occurred, pushing ADA price to hover near $0.990, as traders awaited the next pivotal move.