Cardano (ADA) Price: Will the $0.70 Support Zone Hold as Bears Tighten Their Grip?

Cardano (ADA) Price: Will the $0.70 Support Zone Hold as Bears Tighten Their Grip?

TLDR

• Cardano has suffered a 40% drop over the past week with price now hovering around $0.70
• Bearish technical indicators including death cross formation suggest further downside is possible
• Trade war concerns are overshadowing positive U.S. inflation data, keeping investor sentiment cautious
• Major resistance levels include $0.7050 and $0.7750, while a breakdown could test $0.65 and potentially $0.50
• Other major cryptocurrencies like BNB and XRP have fared better due to positive news catalysts

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%.

Thursday saw another 5% drop before ADA found temporary balance near the $0.70 mark. This price level is currently serving as a crucial support zone for the struggling digital asset.

The technical picture for Cardano has deteriorated over the past week. Multiple indicators are now pointing to 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 indicating strengthening downward pressure.

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 hourly chart, a bearish trend line has formed near the $0.7050 resistance level. This adds another hurdle for any potential recovery attempts in the near term.

Despite this technical weakness, broader economic data has been somewhat encouraging. Recent U.S. inflation reports have come in better than expected, with both CPI and PPI showing positive trends.

Fed Reserve Rates

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.

However, rather than helping crypto prices, this economic backdrop has created new concerns. Many analysts believe lower inflation figures may give the administration more room to maintain or even increase trade tariffs.

This fear is 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 has prompted many investors to reduce their crypto exposure. Risk assets like Cardano have been particularly hard hit as market participants adopt a more cautious stance.

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.

Binance Coin has maintained its position above $573, even posting small gains amid rumors about potential acquisition interest from the Trump family. Similarly, XRP has found support above $2.20 following news about a Dubai regulatory license.

Looking at key price levels, Cardano faces immediate resistance at $0.7050. Beyond this, the $0.7520 level represents the 61.8% Fibonacci retracement of the recent downward move from $0.8170 to $0.6495.

A more significant barrier exists at the $0.7750 mark. Only a clear break and close above this level could signal a potential trend reversal and open the path toward $0.80 or even $0.85.

On the support side, the immediate floor is at $0.6880. If this gives way, ADA could retest the recent low around $0.65, with further support zones at $0.635 and $0.62.

Some analysts are now warning of a possible test of the $0.50 level. This price point, last seen in late 2023, would represent a major extension of the current downtrend.

The recent price action follows a failed attempt by Cardano to reclaim the $1 mark earlier in the week. This rejection has added to the overall bearish sentiment surrounding the cryptocurrency.

Political factors are also weighing on ADA and the broader crypto market. There are growing concerns that proposed crypto initiatives might face funding challenges, with speculation about difficulties in obtaining congressional approval for the crypto strategic reserve.

For a meaningful recovery, Cardano would need to first regain ground above $0.73. This could potentially trigger a short-term reversal and allow bulls to challenge higher resistance levels.

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