ADA Faces Fresh Downside Risk After Rejection At Channel Resistance

ADA faces downside risk after rejection at channel resistance, with support near $0.22 and price trading around $0.25.

Cardano traded near $0.2500 after a 1.61% daily decline on the Capital.com chart.

The move came as ADA remained under pressure after rejection at the upper trendline of a descending channel.

ADA Rejected At Channel Resistance

Cardano faced renewed downside risk after failing to break the upper trendline of its descending channel. The rejection kept price action within a bearish structure on the daily chart.

A market analyst said ADA may retest the lower part of the channel near $0.22. The same view linked ADA’s weakness to Bitcoin’s recent decline.

“If Bitcoin keeps dropping, we may see ADA do the same as well,” the market analyst said. It added that ADA was rejected exactly at channel resistance.

The analyst also said the $0.22 area could become the next retest zone. It described the move as a possible final dip before a recovery attempt.

Cardano Trades Below Main Fibonacci Zone

Cardano was trading near $0.2500, well below the main Fibonacci retracement area. The chart showed ADA still far from its 2025 high zone.

The current price was below the full retracement level near $0.39132. This level now acts as a key resistance area for any recovery.

ADA was also far below the 0.786 Fibonacci level at $0.50618. That level is the first major recovery zone on the chart.

Nearest support appeared around the $0.24 to $0.25 range. ADA was trading close to this area during the latest session.

If ADA breaks below this support, the next downside area may sit near $0.22. A deeper move could bring focus to the $0.20 psychological level.

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Momentum Indicators Remain Weak

The MACD remained weak on the daily chart. The MACD line was near 0.00158, while the signal line stood near 0.00360.

The histogram was around minus 0.00202. This showed that bearish momentum was still present, although the reading stayed close to zero.

The RSI was near 43.66, while its moving average stood around 57.41. RSI remained below the midline, which showed weak market strength.

ADA was not in oversold territory on the chart. This leaves room for more downside if buyers fail to defend nearby support.

Resistance is first seen near $0.39132. A daily close above this level would be the first sign of stronger recovery action.

Above that, ADA would face resistance near $0.50618 and $0.59636. Further levels sit near $0.65970, $0.72303, and $0.80140.

For now, Cardano remains inside a weak daily structure. The $0.24 to $0.25 support range remains important for short-term direction.

A break below that zone could increase pressure toward $0.22 or $0.20. A recovery above $0.39132 would be needed to reduce downside risk.

The post ADA Faces Fresh Downside Risk After Rejection At Channel Resistance appeared first on Live Bitcoin News.