Cardano price forecast: does the support break or does recovery follow?

Cardano (ADA) had a substantial revival last week and almost tapped $ 0.85. In the meantime, however, the race is under pressure again, with Ada who fluctuates around the important level of support of $ 0.72. The big question now is: can the token recover, or does the course permanently go through this support?

Fundaments and technical signals weaken

According to analyst Manish Chhetri, both technical and fundamental indicators sketch a bleak picture. For example, the trade volume on Cardano’s decentralized fairs has fallen considerably.

Chhetri points to data from Defillama, which shows that there is currently only $ 3.06 million in transactions processed, a clear sign of decreasing activity on the network. Also the number of daily active addresses plummet: from 35,696 on 14 May to 23,644 on 20 May. Fewer users simply means less demand for the blockchain.

Technically, it doesn’t look much better according to the analyst either. Take the Relative Strength Index (RSI), a momentum indicator that signals over -bought or sold -out conditions. The value dropped below the neutral level of 50, which indicates increasing sales pressure.

The Moving Average Convergence Divergence (MACD) indicator was also bearish. This technical indicator measures trends in the market through two advancing averages. It gave a sales signal on Sunday with a bearish crossover. The race just found support on the 200-day Exponential Moving Average (EMA) around $ 0.71. But if this level breaks, then a further decrease of around 12% towards the low point at the beginning of May is not unthinkable, according to Chhetri.

Is there hope?

Yet it is not yet a run race. If Ada knows how to cling to the 200-day EMA, the analyst states that we can see an increase again. In that case he expects a recovery to the resistance $ 0.84 is within reach. This price level has already turned out to be a stumbling block and, moreover, coincides with the 50% Fibonacci racement from the peak in March, according to Chhetri, a point where buyers could collect again.