- Cardano must reclaim $0.68-$0.70 range to reverse recent loss
- ADA trades below EMA34 at $0.70 and MA200 at $0.67 creating bearish technical setup
- Key support zones at $0.50-$0.55 and $0.42-$0.50 provide downside protection levels
Cardano faces a critical technical juncture as the cryptocurrency enters its fifth consecutive week of price decline, requiring reclamation of crucial indicators between $0.68 and $0.70 to restore bullish momentum. The correction began during the week of May 12 after ADA reached a high of $0.86, marking the end of a five-week rally that had generated 68% gains from an April 7 low of $0.51.
The tenth-largest cryptocurrency by market capitalization has decoupled from Bitcoin’s upward trajectory, surrendering nearly 27% from its peak to current levels around $0.62. This decline has pushed Cardano well into bearish territory while other major cryptocurrencies have maintained relative strength, creating underperformance concerns among investors and technical analysts.
ADA Technical Indicators Confirm Bearish Structure
Crypto analyst MasterAnanda has identified the root of Cardano’s weakness through TradingView analysis, highlighting that ADA now trades below both the 34-period exponential moving average and the 200-day moving average. These two trend indicators serve as major benchmarks for determining bullish or bearish market structure, and Cardano’s position beneath both levels creates unfavorable technical conditions.
The analyst noted that this positioning makes ADA appear weaker compared to XRP and Ethereum, which have maintained better technical structures during recent market volatility. The breach below these moving averages suggests that selling pressure has overwhelmed buying interest, potentially extending the bearish trend in the short term.
However, MasterAnanda acknowledged that five consecutive weeks of correction may be approaching exhaustion levels. The 27% retracement from peak levels could be sufficient to restore market balance and create conditions for potential reversal, particularly if broader cryptocurrency markets stabilize.
The key to Cardano’s recovery lies in reclaiming the $0.68 to $0.70 price range, which closely aligns with the EMA34 at $0.70 and MA200 at $0.67. MasterAnanda emphasized that “all things change for ADA” if it successfully closes above this critical zone, as it would signal renewed bullish momentum and potential trend reversal.
From current levels around $0.62, reaching the target range would require rallies of 10% to 13%, providing clear upside targets for traders monitoring potential recovery scenarios. Until this reclamation occurs, the analyst advised patience among investors while bearish conditions persist.
CryptoPulse has identified additional technical levels to monitor during the ongoing correction. The analyst points to a descending triangle pattern with key support zones that could provide downside protection if selling pressure continues.
