Cardano (ADA) Continues to Trade Below Key Resistance

YEREVAN (CoinChapter.com) — Cardano (ADA) continues to trade below key resistance, with the price holding near $0.61 as of April 16.

Cardano (ADA) is currently trading below key resistance levels, with the price hovering near $0.61 on April 16. The asset briefly recovered from the $0.55 support but failed to break above $0.65, keeping bearish pressure in place.

Cardano Struggles to Break Above 50-Day EMA

The 50-day EMA at $0.6951 has acted as a ceiling for ADA, which stayed under this moving average since early March. Unless the price reclaims this level, upward momentum remains limited.

Fibonacci levels also highlight the current range. Cardano bounced from the 0.786 Fib support at $0.5490. However, it now faces resistance at the 0.618 level around $0.7182. The next major pivot lies at $0.8370, but it won’t come into play unless ADA breaks above both the EMA and the $0.70 range.

Meanwhile, the Relative Strength Index (RSI) stands at 43.5. This reading, still below the neutral 50 mark, signals weak buying strength. As long as RSI remains low, recovery attempts may stay short-lived.

Trading volume remains muted, indicating a lack of urgency from market participants. A fresh catalyst or a strong move above $0.65 is needed to shift the trend decisively.

Overall, if the price manages to close above $0.65 and flip it into support, then ADA could aim for $0.70 and higher. If not, the bearish structure stays intact.

Long-Term Holders Exit As Age Consumed Metric Surges

At the same time , the Age Consumed metric on blockchain analytics platform Santiment jumped sharply over the past week, showcasing that long-term holders (LTHs) increased their selling activity.

When Cardano’s price saw a brief rise earlier in the week, these holders likely took the chance to cash out and lock in gains. Their exit added pressure on the market and pushed the price down.

This wave of selling highlights that LTHs are exiting due to growing caution amid market uncertainty. Despite entering 2024 with optimism, the crypto market has yet to show signs of a strong recovery. Faced with continued uncertainty, many appear unwilling to hold their tokens longer.

As a result, Cardano’s market sentiment has turned from optimistic to cautious. Despite bouncing back from the lows of 2024, ADA’s recovery remains weak.

Adding to this bearish trend, crypto analyst Ali Martinez reported that whales offloaded over 100 million ADA in the past week.

This large-scale distribution suggests that even major holders are reducing their exposure. Combined with LTH exits and a failed breakout attempt at $0.65, the whale activity reinforces the idea that Cardano remains under strong selling pressure.

Unless the price reclaims key levels such as the 50-day EMA or the 0.618 Fib level, the current trend points toward further downside risk.