Cardano’s price action this week has left traders on edge as the much-watched $0.61 support finally buckled. This move came amid a fresh wave of risk aversion across the crypto market, highlighted by the Fear & Greed Index plummeting to just 31.
In the span of 72 hours, Cardano whales holding between 100 million and 1 billion ADA offloaded more than $100 million worth of tokens. This activity sparked a wave of liquidations, including $15.9 million in short positions being squeezed around the $0.666 mark.
As the dust settled, ADA’s price found itself on shaky ground, with traders now closely watching technical indicators for any early signs of opportunity.
### ADA Price Analysis
After days of relentless selling, ADA is currently trading at $0.6117, down 3.42% on the day and nearly 6% for the week. The 24-hour trading volume edged up slightly by 0.5% to $1.18 billion.
The breakdown below the $0.61 Fibonacci 50% retracement level not only invalidated Cardano’s multi-month sideways trend but also positioned the altcoin at a critical crossroads among traders.
The 200-day simple moving average (SMA) sits much higher at $0.7426, marking a significant resistance level that bulls must reclaim to reignite upside momentum. More immediately, the $0.6808 area coincides with the upper Bollinger Band, which any relief rally will need to overcome.
Looking at technical indicators, the Relative Strength Index (RSI) hovers at 35.1, signaling an oversold market. However, there is no concrete sign of a bottom or reversal as bears continue to pressure sentiment. Meanwhile, the MACD histogram has just flipped positive at +0.0029, suggesting a hint of short-term relief but not yet a confirmed change in trend.
If the current price fails to hold, attention will turn to the next vital support level at $0.546, which aligns with the 2025 swing low. A sustained move below this point could expose ADA to a deeper slide. Conversely, a bounce from here might trigger a round of short covering and potentially set up a relief rally—provided volume supports the move.
https://coinpedia.org/price-analysis/cardano-price-breakdown-can-ada-hold-0-55-after-losing-0-61-support/