Cardano (ADA) experienced a 2.04% decline over the past 24 hours while maintaining a 6.89% weekly gain. The slowdown occurred near the month-old swing high of $0.258. Bitcoin’s retracement toward $84,000 contributed to the dip. The $0.235 support level was tested last week. Increased buying pressure kept Cardano within an uptrend, though high profitability among short-term holders helped stall upward momentum. The daily close at $0.2588 on September 25 barely surpassed the previous swing high, confirming bullish continuation but reinforcing $0.260 as a supply zone. Volume indicators Chaikin Money Flow (CMF) above +0.05 and On-Balance Volume (OBV) at multi-month highs confirmed steady buying pressure. The Relative Strength Index (RSI) at 59 indicated bullish momentum, but a double rejection from $0.26 raised the possibility of a deeper retracement. Support at $0.235 may be tested, with potential further drop to the $0.206-$0.219 Fibonacci golden pocket area.
Cardano dropped 2.04% in the past 24 hours but retained a 6.89% weekly gain. The momentum slowdown occurred around the month-old swing high of $0.258.
Bitcoin’s retracement toward $84,000 also contributed to the price dip. The $0.235 support level was tested last week, and the altcoin’s price might gravitate south once again.
Increased buying pressure in recent weeks meant Cardano was still within an uptrend. High profitability among short-term holders helped stall the upward momentum, combined with the Bitcoin price dip.
The daily close at $0.2588 on Friday, September 25, barely beat the previous swing high at $0.2584. Technically, this signaled a bullish continuation, but it also solidified the $0.260 area as an important supply zone.
At press time, the Chaikin Money Flow (CMF) was above +0.05, and the On-Balance Volume (OBV) was at multi-month highs. Together, the two volume indicators confirmed steady buying pressure in recent weeks and justified the uptrend.
The Relative Strength Index (RSI) score of 59 showed that the daily timeframe’s momentum remained bullish. Yet, the double rejection from $0.26 opened the possibility of a deeper price retracement.
In case of such a dip, the $0.235 support might hold. If it does not, the lower timeframe price charts could reveal how deep the dip could go.
On the 4-hour timeframe, Cardano’s price action has a bullish structure. However, the technical indicators signaled a potential pullback in progress.
At press time, the RSI dipped below neutral 50, the CMF entered neutral territory, and the OBV was beginning to slide lower. While $0.235 is an important support level, it is likely that the price could drop as deep as the $0.206-$0.219 area, representing the Fibonacci golden pocket plotted using the latest impulse move higher from $0.190 to $0.265.
