Cardano tests short-term recovery but faces resistance and a whale sell-off. Can ADA avoid a drop below $0.5346?

Amid a sudden spike in crypto market volatility, Cardano struggles to stay above $0.60. With the breakdown of a consolidation range, the market anticipates a steep correction.

Currently, Cardano is trading at $0.6612, with an intraday recovery of 1.63%. Will the short-term recovery prevent a price plunge to $0.50?

Cardano Price Analysis

On the daily chart, Cardano’s price trend shows a recent breakdown of the consolidation range. The bearish breakdown occurred with a 5.48% drop on April 2, triggering a selling opportunity.

However, despite the global economic uncertainty, ADA’s price trend has seen a minor rebound, creating the possibility of a morning star pattern. Cardano formed two consecutive bullish candles, but following the range breakdown, this short-term recovery may only be a retest.

The retest struggles to overcome the 38.20% Fibonacci level, which coincides with the lower range of the consolidation pattern. Due to the prevailing downtrend, the increased bearish pressure warns of a death cross between the 50-day and 200-day exponential moving averages. This could trigger a trend reversal and a selling opportunity.

The relative strength index (RSI) has dropped below the halfway mark, supporting the likelihood of a deeper correction. This indicates weakening bullish momentum and increasing the chances of a post-retest decline.

Cardano Price Targets

As technical indicators suggest a potential crash in Cardano prices, the Fibonacci levels provide price targets. Based on the current price trend, the range breakdown is likely to test the 23.60% level at $0.5346, which suggests a downside potential of more than 18%.

Further declines could test the long-standing descending support trendline, potentially targeting the $0.50 psychological level.

On a bullish trend, recovery above the 38.20% level could lead to testing the 50% Fibonacci level at $0.7746. Notably, the 100-day EMA aligns with the 50% level, making it a crucial resistance point for Cardano.

Whales Dump ADA

Crypto analyst Ali Martinez highlights a significant drop in whale confidence for Cardano. In his recent tweet, Martinez reports that whales have sold off 120 million ADA in the past 48 hours. This has reduced whale holdings to 5.71 billion ADA, down from a peak of 5.87 billion.