Cardano is struggling to maintain the $0.50 mark as bearish pressure mounts, with the potential for a drop to $0.32.

As Bitcoin momentarily dips below the $75,000 mark, Cardano reaches a 24-hour low of $0.51. The ADA token is currently trading at $0.5482, recording an intraday pullback of 4.38% at press time.

The bearish trend in Cardano is testing a long-standing support trendline, raising concerns of a potential breakdown. Will this lead to a nosedive to the $0.32 mark?

Cardano Price Analysis

Cardano’s price trend on the daily chart reveals a breakdown from a consolidation range. The falling prices are approaching the long-established support trendline.

Following a 12.41% decline on Sunday, Cardano’s bearish trend persists. The ADA price momentarily dipped below the 23.60% Fibonacci level at $0.5346.

Cardano Price ChartDespite the recent surge in selling pressure, Cardano is holding above the $0.50 psychological level as buyers maintain support at this key Fibonacci level. As Cardano witnesses lower price action near the support trendline, price action analysis suggests the possibility of a bullish reversal.

This is based on previous bullish turnarounds in Cardano’s price trend since late 2024. However, due to the ongoing downtrend, the 50-day and 200-day exponential moving averages are on the verge of triggering a death cross event, which would mark a sell signal for price action traders.

Additionally, the True Strength Index (TSI) is at -0.91, indicating a strong bearish trend. This increases the likelihood of a breakdown below the 23.60% Fibonacci level or a minor consolidation around the crucial $0.50 support.

ADA Price Targets

Based on the Fibonacci levels, a quick turnaround with a long-tailed candle from the 23.60% level suggests the possibility of a bullish recovery in Cardano. This short-term recovery could lead to a retest of the 38.20% level at $0.6673, representing an upside potential of nearly 20%.

On the other hand, a daily close below the 23.60% level at $0.5346 would increase the risk of a breakdown below the support trendline. This could expose Cardano to a downside risk of up to 40%, with the $0.32 support level becoming a likely target.