Cardano (ADA) Enters May 2025 Trading Just Under the $0.70 Mark, Showing Signs of Stabilization

Cardano (ADA) enters May 2025 trading just under the $0.70 mark, showing signs of stabilization after recovering from its recent April lows. Despite occasional spikes and dips, ADA continues to hold critical support levels on higher timeframes.

The token remains in a tug-of-war between buyers defending the 0.618 Fibonacci level and sellers capping gains near the $0.72 resistance zone.

Weekly Chart: Fibonacci Retracement Offers Key Guidance

Current position:Cardano (ADA) is sitting right on the 0.618 Fibonacci retracement level at $0.676, which is calculated from the $0.27 low to the $1.32 high. This level often acts as a turning point where prices bounce back after a correction.

Why it matters:Historically, this zone ($0.66–$0.68) has seen strong buying interest, and the recent weekly candles closing above it suggest bulls are trying to defend this support.

If support holds: A breakout above the 0.786 Fibonacci level, currently around $0.80, could propel a deeper rally.

If support breaks: A move below $0.62 might invite further selling pressure, potentially testing the $0.50 zone.

Daily Chart: Testing Lower Highs, But Bullish Structure Intact

The daily structure presents a clean recovery attempt. Cardano recently broke above a descending trendline formed since March and is now attempting to sustain above it. While resistance persists near $0.73–$0.75, the broader trend has shifted from lower lows to higher lows—indicating momentum may be gradually favoring the bulls.

Support rests in the $0.66–$0.68 range, while upside resistance remains concentrated between $0.72 and $0.76. A successful push past these levels would be a strong bullish signal, potentially leading to an extended rally.

4-hour Chart: Narrow Range, Squeeze Phase in Play

On the 4-hour timeframe, ADA is consolidating between $0.68 and $0.71 after multiple rejections from the descending resistance. The green zone ($0.67–$0.68) has acted as a reliable support base, and a breakout from this tightening structure could unfold as early as the first week of May.

The trendlines confirm a converging pattern, with breakout pressure mounting. A clean move above $0.711 would invalidate the descending resistance and trigger a bullish extension.

EMA and RSI Analysis (4H): A Delicate Balance

Cardano is currently above its 20, 50, 100, and 200 EMAs, with the 20 EMA ($0.696) and 50 EMA ($0.692) providing immediate support. This EMA alignment suggests a healthy bullish foundation, though a breakdown below $0.675 (200 EMA) could weaken the outlook.

The RSI is currently at 49.46—hovering near the midpoint, signaling neutral momentum. A push above 55 would reflect strengthening buyer activity, while a dip below 45 could raise caution for downside continuation.

Bollinger Bands and MACD (4H): Volatility Brewing

The Bollinger Bands are starting to narrow again, suggesting a volatility squeeze. Price is trading close to the middle of the bands, leaving room for expansion in either direction. Traders should watch for a move toward the upper band ($0.72) to confirm bullish breakout intent.

Meanwhile, the MACD is slightly bearish but flattening out. With both the MACD and signal lines nearing convergence and the histogram close to neutral, the market awaits a catalyst to establish directional clarity.

Cardano (ADA) Price Forecast Table: May 2025