Bottoming Out or More Losses Ahead?

• Cardano’s $0.70 resistance level remains crucial for a potential bullish breakout.
• RSI consolidation around 50 suggests ADA may be preparing for a trend reversal.
• Grayscale’s pending Cardano ETF decision could significantly impact market sentiment.

Cardano (ADA) has seen a price dip, leading to investor discussions about whether it’s hit its lowest point or more downside is coming. 

Crypto Capital Venture’s analysis points to recent price action that highlights key technical patterns, potentially showing its next direction. Some analysts still think ADA is in a historical uptrend, while others warn of ongoing selling pressure

Long-Term Investors Watch Market

Despite the market’s uncertainty, long-term investors are patient. They’re watching technical indicators and future developments that could move the market. 

The SEC’s upcoming decision on Grayscale’s Cardano ETF application adds another layer of speculation, as regulatory approvals often affect market sentiment. Meanwhile, traders are tracking ADA’s support and resistance levels, seeking signals of a possible turnaround.

Technical Indicators Hint at Past Trends

Looking at ADA’s monthly chart, some investors note the Relative Strength Index (RSI) crossing above its moving average. This event, in the past, has signaled bullish trends. Not just that, it also matches previous cycles, strengthening the idea that history could repeat. 

However, recent price drops are concerning. ADA is currently trading between the 20 and 50-week moving averages. 

Plus, a head and shoulders pattern has formed, raising questions about whether ADA will break downward or recover. Some traders use inverted charts to eliminate emotional bias, revealing possible breakout chances that might not be immediately clear.

Critical Support and Resistance Levels

ADA’s ability to maintain key support levels will dictate its next move. 

Related: ADA Price Targets $0.83 as Analyst Predicts Breakout Rally

The RSI’s consolidation around the 50 level mirrors previous periods of market uncertainty, often preceding upward movements. 

Fibonacci Levels Suggest Potential Turning Points

Fibonacci retracement levels offer more insight, helping to spot potential market turning points.

A major resistance level stays in the $0.70–$0.71 range, which previously acted as a barrier. If ADA successfully turns this into support, it could signal new bullish momentum. However, failure to rise above this level may cause further declines.

Related: Solana’s Crown Slipping? Cardano Heats Up as a Top Crypto Rival

As of press time, Cardano (ADA) is currently priced at $0.6785, with a 24-hour trading volume of $1,011,810,475. Over the past 24 hours, its price has risen by 2.91%, while it has declined by 9.51% over the past week. With a circulating supply of 36 billion ADA, its market capitalization stands at $24,351,279,550.