Cardano (ADA) Faces Downward Pressure After Rejection at Key Resistance Level

Cardano (ADA) is facing renewed bearish momentum after being rejected at the top of its descending channel, according to market analyst Ali.

The technical setup suggests ADA may be poised for a further decline if selling pressure continues.

Analyst: Cardano Facing Downward Pressure After Rejection at Key Resistance Level

“Still looking bearish on ADA as long as it stays below the upper boundary of the channel,” said the analyst.

“Rejection at this zone after a previous attempt to break through signals that the downtrend remains intact.”

According to the expert, if the current pressure persists, ADA could be setting up for a move down to $0.63, with the possibility of falling even further to $0.54 — a level aligned with the lower range of the channel and a key Fibonacci retracement level.

“$0.54 also closely coincides with the lower range of the channel (yellow) and the 0.382 Fibonacci retracement level from the 2023 low to the 2024 high.”

However, if buyers manage to regain control and push ADA above the descending channel, it could encounter resistance at $0.49, the analyst added.

“A breakout above this zone may be needed to reverse the short-term bearish momentum.”

ADA is trading down 2.5% in the past hour and slipped below the $0.39 level.