Cardano (ADA/USDT) Faces Heavy Selling Pressure as the Price Battles to Hold the $0.50 Support Zone
Estimated Reading Time: 3 minutes
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
Cardano against Tether in recent times has come under intense bearish pressure, sliding sharply from early-October highs around $0.7800 to the current range near $0.5900. Meanwhile, the daily chart shows a clear downtrend, with all short- and long-term GMMA ribbons fanned downward. This reflects a strong selling momentum with little sign of trend reversal yet, as displayed by the Stochastic RSI.
However, as it stands, the Stochastic RSI on the daily is approaching oversold territory, hinting that the pair might be close to a short-term exhaustion point where a relief rally could form before the next major move.
Currently, Cardano trades at $0.5957, recording well over 138 million traded volumes for the day.
Technical Indicators
Major Resistance Levels: $0.6536, $0.6780, and $0.7045
Major Support Levels: $0.5630, $0.5250, and $0.5100
Cardano Technical Analysis
On the daily timeframe, Cardano against Tether has been on a continued downtrend, sliding even towards $0.5100 due to the recent market crash in early October. However, the volume since then has declined even more. The Stochastic RSI and the Guppy Multiple Moving Averages (GMMA) present evidence of bearish pressure in the market.
To this end, it appears the market is aiming at support at the current level; a support balance at $0.5900 could lead to a move towards $0.6000; otherwise, a fall below $0.5900 would lead to the retest of the previous support at $0.5100.
Setting the Stage for a $2.00 Move?
Cardano seems to be approaching a critical support level near $0.51, a point which could decide the next major directional movement. After months of sideways movement and a short period of market dip, the token is now at a point where the structure could either break down into a more bearish scenario or finally decide on a reversal to the north, especially towards $2 and beyond.
ADA/USDT Analysis: A Short-Term Relief Bounce or Continued Downtrend?
On the 4H chart, the pair of ADA/USDT has failed to grow above the GMMA ribbons, confirming persistent downward bias. However, Stochastic RSI is deeply oversold (9.57), suggesting bears may be losing momentum in the short term. As it stands, a mild corrective bounce could retest $0.6200, but sustained recovery requires strong buying pressure above that zone.
To this end, a descending channel seems to be forming, signaling bearish exhaustion; a potential bullish reversal might surface if the price breaks convincingly above the upper trendline near $0.6300 with volume confirmation. However, failure to break that level may result in further decline.
You can purchase crypto coins here. Buy Crypto
