Cardano Reclaims $0.69 After 5.8% Drop, Bulls Eye Reversal at Key Support Zone

ADA holds firm near $0.653 support, signaling potential for a short-term bullish reversal.

Indicators remain bearish, but the historical accumulation zone between $0.60–$0.40 draws buyer interest.

Cardano's growing network and developer activity may support a rally if price stays above $0.60.

Cardano (ADA) is currently trading at $0.6634 and has shown signs of holding strong near a historical support level. The $0.653–$0.60 zone has provided reliable footing for buyers in the past four months. With Bitcoin’s volatility easing and technical signals stabilizing, ADA may be preparing for a reversal.

Price Holds Key Support as Bulls Observe Reaction Levels

According to analysis prepared by MoreCryptoOnline via X, a possible wave (4) correction is underway. This pattern suggests that ADA should stay below $0.714 to remain valid. The support around $0.653 has served as a key bounce level multiple times and is being retested again.

Source: MoreCryptoOnline(X)

The Relative Strength Index (RSI) remains below 50, showing a bearish environment. The Awesome Oscillator (AO) also posted a red histogram under zero, which suggests continued selling pressure. However, these indicators often precede accumulation when the price hits strong technical support.

Source: Rami(X)

ADA dropped by 5.8% on May 31. Despite this, the token quickly reclaimed the $0.69 level, as noted by analyst Rami on social media. This price movement hints at buying interest returning near support.

Market Structure and Next Targets to Watch

ADA has fallen under the 50-day simple moving average (SMA) at $0.714, which now acts as a short-term resistance. A sustained move above this level may attract fresh buyers. If momentum builds, ADA could target $0.826 and $0.86, near the 200-day SMA.

The $0.60–$0.40 area is considered a historical accumulation zone. This range often sees long-term holders enter positions. If ADA can hold above $0.60 and form a higher low, traders may anticipate a rally toward $1.20.

According to a development report by Input Output, Cardano’s network growth continues with over 2,000 active projects and increasing user activity. This steady growth may support future price recovery if market sentiment improves.

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