Cardano Price Slides Below $0.650, Signaling Bearish Correction

Cardano's (ADA) price has corrected downwards from $0.6840 against the USD, trading below $0.650 and the 55 Simple Moving Average (4 hours). A major bullish trend line with support at $0.6480 was broken on the 4-hour chart. Establishing above the resistance levels of $0.6260 and $0.650 could initiate an upward momentum, with potential targets of $0.6840, $0.720, and $0.750. However, dropping below $0.580 may lead to further declines towards $0.5650 and $0.5250.

Cardano Price Charts a Bearish Correction, Stumbles Below $0.650

Amidst broader market fluctuations, Cardano (ADA) has embarked on a downward correction, shedding value against the United States Dollar. The asset's price has descended below the $0.650 mark and has breached a crucial bullish trend line that had previously provided support near $0.6480, as per data obtained from Coinbase.

Technical Analysis Indicates Downturn

The recent price action has resulted in ADA trading below the 55 Simple Moving Average (SMA) on a 4-hour chart, further accentuating the bearish sentiment. The cryptocurrency has failed to sustain its momentum above $0.650 and has instead experienced a pullback.

Furthermore, Cardano's price has broken below the significant 50% Fibonacci retracement level, indicating a potential reversal of its previous upward trajectory. This level represented the midpoint between the low of $0.5690 and the high of $0.6839.

Resistance and Support Levels

At present, ADA faces immediate resistance at $0.6260, with the next significant hurdle located at $0.650. A decisive breach of the $0.650 resistance level could trigger a bullish resurgence, potentially driving the price towards $0.6840. Further gains may propel ADA towards the $0.720 or even $0.750 resistance levels.

Conversely, if the downward pressure persists, ADA may find support at the $0.5950 level, which coincides with the 76.4% Fibonacci retracement level. The next major support zone lies near $0.580. A clear break below $0.580 could exacerbate the selloff, potentially sending ADA towards $0.5650 and eventually $0.5250.

Technical Indicators Paint a Bearish Picture

Technical indicators on the 4-hour chart support the bearish outlook for ADA. The Moving Average Convergence Divergence (MACD) is gradually gaining momentum in the negative zone, while the Relative Strength Index (RSI) has dipped below 50, indicating a shift in market sentiment.

Conclusion

Cardano's price has entered a corrective phase, exemplified by its descent below $0.650 and the 55 SMA. The breach of the bullish trend line and Fibonacci retracement level further underscores the bearish trend. Immediate resistance lies at $0.6260 and $0.650, while support levels are found at $0.5950 and $0.580. Technical indicators reinforce the bearish narrative, with MACD trending downwards and RSI below 50. Investors should exercise caution and closely monitor market developments to assess potential opportunities or risks.