Drop in Cardano (ADA) Price to $0.80 after a 15.7% rally driven by ETF

Drop in Cardano (ADA) Price to $0.80 after a 15.7% rally driven by ETF

As of late July 2025, the technical analysis indicators for Cardano (ADA) present a mixed but cautiously optimistic outlook. Here's a breakdown of the key findings:

Short-term (4-hour and daily charts): ADA shows bearish tendencies. On the 4-hour chart, the 50-day moving average is declining, indicating a weakening short-term trend. The daily chart also reveals a falling 50-day moving average currently below the price, suggesting potential downward pressure. The 200-day moving average on the daily chart is falling as well, signaling long-term weakness on this timeframe.

Weekly timeframe: ADA appears bullish with the 50-day moving average below the price and rising, potentially acting as support. However, the 200-day moving average is falling, reflecting some longer-term uncertainty or a prior downtrend that might be reversing.

Long-term moving average (50-month): Cardano recently bounced off its 50-month moving average, a critical long-term support level. This bounce is interpreted as very bullish for mid- and long-term prospects, indicating structural support and accumulation zones forming, which historically precede price appreciations.

Other key levels and momentum indicators: ADA is currently consolidating above the $0.83 mark near a descending trendline, trading within a symmetrical pattern on multiple timeframes, suggesting traders are watching closely for breakout confirmations. The Moving Average Convergence Divergence (MACD) has recently given a sell signal with the MACD line crossing below its signal line, and the Relative Strength Index (RSI) around 54 and declining, indicating decreasing buying pressure but not yet entering oversold territory.

Sentiment and market context: Market sentiment is moderately bullish, with a 71% bullish technical sentiment and a high Fear & Greed Index score of 75 (Greed), which often signals optimism but can also precede corrections. Fundamental drivers such as the Plomin hard fork upgrade and institutional inflows add bullish momentum.

Summary: The short-term technical indicators suggest some bearish pressure or consolidation, while weekly and especially long-term signals point toward a stable base with potential for a bullish rebound. Key supports near $0.70-$0.83 hold well, reinforced by bouncing from the 50-month moving average. However, momentum indicators like MACD hint at caution. Overall, technical analysis implies Cardano may be poised for eventual upward movement, provided it confirms a breakout from current consolidation and sustains above critical support levels.

This mixed stance means traders should closely monitor breakout confirmations and key moving averages for clearer directional signals in the near future. As of now, the price of Cardano stands at $0.80, with trading volume on Binance spot markets standing at $242.2 million. The immediate support level for Cardano is at $0.74, aligning with the 26-period EMA, and the primary resistance stands at $0.94, coinciding with the Bollinger Band upper boundary. Breaking above $0.94 would open the path toward the psychological $1.00 level, while bulls defended the $0.75 support level on Thursday, preventing a deeper correction toward the 50-day SMA at $0.66. The positive histogram reading of 0.0028 confirms buying pressure remains intact, and a stronger support zone for Cardano exists at $0.57, marking the breakout point from earlier this month. For aggressive traders, the current $0.80 price offers a risk-reward setup with stops below $0.74.

[1] Source: TradingView [2] Source: CoinMarketCap [3] Source: CoinDesk [4] Source: Investing.com [5] Source: FX Empire

1. Despite the short-term bearish indicators of Cardano, the mixed but optimistic outlook suggests that it might be strategic for traders to keep a close watch on the cryptocurrency, especially the breaking of key moving averages for clearer directional signals, as a potential bullish rebound seems possible based on the weekly and long-term technical analysis.
2. The NSE (National Stock Exchange), a leading stock exchange in India, might consider the impact of Cardano's technical analysis on technology-focused investors, as the mixed stance implies that Cardano could provide a potential investment opportunity in the cryptocurrency market, provided it confirms a breakout from current consolidation and sustains above critical support levels.

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