Cardano remains one of the top ten cryptocurrencies despite its latest price struggles.
But as the cryptocurrency market experiences heightened volatility, Cardano price has faltered.
Bitcoin hovered around $87,850 after a sharp correction from its recent peak, and Ethereum struggled below $2,890, highlighting the plight of cryptomarket.
As analysts point out, the risk of ADA dipping further could accelerate if BTC and ETH slump beneath $87k and $2.6k, respectively.
Gold’s rally to a new record high has not helped the crypto bellwether token’s case, though long-term, bulls see BTC taking over.
Cardano price revisits support
The macroeconomic and geopolitical pressures that have pushed altcoins like Cardano (ADA) lower continue, and this means likely continuation of profit-taking.
Cardano’s token recently jumped amid bullish sentiment, but has since retreated to retest the $0.33 support zone.
This is after the bulls failed to sustain gains above $0.35 earlier.
At the time of writing, the token traded at $0.34, having marked a daily low of $0.3384.
Bulls are at risk of breaking below the $0.33 threshold, with this retest coming amid compressed price action within a $0.33–$0.36 range.
Cardano has previously defended dips in this area, but is currently showing waning conviction.
Open interest is falling, and sustained pressure could accelerate declines toward $0.27 or even $0.20.
Funding rates further signal the indecision among leveraged traders.
Also amplifying bearish momentum is a risk-off environment that has seen gold run to a new all-time high above $5,000.
Short term ADA price forecast
Bulls may yet catch a break if Bitcoin rides fresh momentum above $90,000. In this case, Cardano will track gains and strengthen above $0.36.
ADA could climb to $0.50-$0.75 in an uptrend driven by broader market gains.
Potential ecosystem upgrades and renewed institutional inflows will catalyse momentum if this happens.
However, the short-term price forecast is largely cautious as near-term breakdown risks intensify.
Bearish scenarios loom larger if the $0.33 retest falters, potentially driving ADA to $0.282 or lower.
Liquidation cascades triggered by overleveraged long positions are capping the token’s upside, leaving its trajectory closely tied to moves across the broader risk-asset market.
The Relative Strength Index (RSI) for ADA currently lingers around 40 on daily charts.
While this indicates a potential move to oversold conditions that could precede a bounce, it also reflects the outlook of persistent downward pressure.
RSI thus signals a breakdown that also aligns with bearish confirmation of the Moving Average Convergence Divergence (MACD).
The indicator shows fading strength, although a potential reversal will materialize if buy-side pressure emerges.
Divergences here suggest seller exhaustion, supporting the inverse structure’s validity, yet a confirmed breakdown would reinforce the negative MACD signals toward deeper corrections.
The $0.30-$0.33 zone is therefore crucial to buyers, while sellers will fancy a return to the lows of the $0.25-$0.28 region.
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