- Cardano (ADA) is hovering near critical support at $0.685, with fading volume and bearish pressure threatening further downside.
- However, bullish signals from the MACD and RSI suggest a potential short-term rebound if momentum shifts.
Cardano (ADA) is at a technical crossroads as it approaches a key support level at $0.685, a must-hold zone that could determine the altcoin’s near-term direction. Despite starting April 30 with promise at $0.7122, ADA quickly lost steam, slipping 2.5% on the day and signaling potential volatility ahead of the new month.
The retreat highlights growing uncertainty in the market. While early-session gains hinted at bullish intent, sellers swiftly reclaimed control. Contributing to this bearish tilt is a notable drop in trading volume—down 5% to $785.52 million—signaling weakening buying interest.
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Still, not all signs point downward. The MACD indicator is flashing early bullish divergence, with the MACD line climbing above the signal line. This crossover, supported by a small uptick in green histogram bars, hints at a potential shift in momentum. Likewise, the RSI sits at a neutral-but-rising 55.35, climbing out of oversold territory. This suggests that although ADA lacks strong bullish conviction, a short-term rebound remains on the table.
ADA’s next moves will hinge on key resistance and support levels. Immediate resistance looms at $0.7122, with a secondary cap near $0.715. These zones must be overcome for any real bullish follow-through. Conversely, ADA is flirting with soft support at $0.690, but the real battleground lies at $0.685. A close below this level could trigger further losses, possibly accelerating the current downtrend.
As May begins, ADA traders should prepare for heightened volatility. Mixed signals from technical indicators suggest a tug-of-war between fading bullish hopes and growing bearish pressure. Whether Cardano can rebound—or continues its slide—will likely be decided in the coming days.
Bottom Line: ADA is on thin ice. With volume fading and technicals offering conflicting clues, all eyes are now on the $0.685 support zone. A bounce here could spark a short-term rally—but failure to hold could mean deeper pain ahead.