What you need to know:
- Cardano (ADA) is struggling to break $0.33, making this level crucial for a potential bullish breakout.
- The daily falling wedge pattern signals potential upside momentum if the ADA closes decisively above $0.33.
- The RSI shows oversold conditions, while the MACD confirms bearish momentum, indicating cautious sentiment.
Cardano (ADA) is moving into a bearish to neutral stance on Sunday, February 8, after multiple attempts to move above the $0.33 resistance level, indicating cautious sentiment among traders.
The broader crypto market remains subdued, with Bitcoin and Ethereum near consolidating multi-week lows, adding to near-term investor uncertainty.
Source: Crypto VIP signal
According to According to crypto analyst Crypto VIP Signal, ADA trades within a falling wedge pattern on the daily chart, which is often a signal of potential bullish momentum if resistance is finally broken.
Crypto VIP Signal recommends keeping a close eye on the $0.33 level as a daily close above this point could confirm upside momentum. Until then, entering new positions can be risky.
Also read: Cardano under pressure: ADA tests critical support zone of $0.249
Cardano (ADA) Fibonacci levels indicate a continued downtrend
According to TradingView, the weekly ADA chart from Sunday, February 8, indicates that after reaching a high near $1.02 in mid-2025, ADA has failed to recover the crucial Fibonacci retracement levels, namely 0.236 at $0.899 and 0.382 at $0.824.
ADA’s bid to hold $0.70 has not proven successful, as evidenced by two consecutive red candlesticks highlighting continued selling pressure.
Source: Trading view
Immediate resistance is at the 0.618 retracement at $0.767, where selling pressure could occur if a recovery occurs.
On the downside, support lies at the Fibonacci extension of 1.618 at $0.196, where a possible recovery could occur if bearish momentum is maintained.
Experts say there is a continued formation of lower lows, indicating that bearish sentiment is dominant, and traders should be cautious when taking a long position.
Momentum indicators point to near-term stabilization
The Relative Strength Index (RSI) currently stands at 28.66. This means that the asset is considered oversold and is likely to see an upturn or recovery in the near term.
The MACD indicator is also in negative territory, with the MACD line trading below the signal line, meaning the bearish momentum is still active.
Source: Trading view
Collectively, these indicators suggest that while selling pressure is still strong, ADA is at a crossroads where some form of corrective stabilization or consolidation may be seen.
This could be an opportune time for traders to clearly assess the direction of the market and decide on the best course of action.
Also read: Cardano (ADA) accumulating near support ready for move towards $1.20
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