Cardano (ADA) Drops to $0.82 as Traders Eye $0.91 Break or $0.73 Slide
ADA is trading at $0.82 after a 5.4% drop on Tuesday and is testing a support zone that has held several times this month.
Quick overview
- ADA is currently trading at $0.82 after a 5.4% drop, testing a support zone that has previously held.
- Everstake has been appointed as an official Delegated Representative, enhancing Cardano's governance framework and institutional participation.
- Technical analysis shows bearish pressure with resistance at $0.85, while ADA's short-term movement depends on holding the $0.82 support level.
- Traders are advised to consider bearish positions below $0.82 and bullish positions above $0.85 as ADA is poised for a significant price movement.
ADA is trading at $0.82 after a 5.4% drop on Tuesday and is testing a support zone that has held several times this month. It rebounded 9% from the same level before being rejected at $0.85 and $0.91, the same descending trendline from mid-August.
Despite short term weakness ADA is still attracting retail and institutional attention as governance and ecosystem developments strengthen its long term appeal.
Governance Boost with Everstake
Cardano’s governance framework moved forward this week as Everstake was appointed an official Delegated Representative (DRep), giving it full voting rights in protocol upgrades and governance votes. This is a sign of growing institutional participation and Cardano’s goal of more on-chain decision making.
Key points:
- Everstake becomes a DRep with direct protocol influence.
- Cardano’s governance model matures with more institutional participation.
- ADA holders get more structured community led upgrades.
Everstake said in a statement that it will drive decentralization and that the appointment is part of a broader effort to build “a governance system that can scale with the network.”
Cardano (ADA/USD) Technical Analysis: Bearish Pressure Builds
On the charts ADA’s candlestick structure shows selling pressure, small red candles and long upper shadows at $0.85. The 50 period SMA at $0.85 has turned into resistance, adding to the bearish bias.
Momentum indicators confirm:
- RSI at 33 is heading towards oversold but hasn’t triggered a bounce yet.
- MACD histogram is flat and near zero, showing weakening momentum.
The short term setup is dependent on ADA holding $0.82. A break down could go to $0.77 and $0.73, a bounce above $0.85 would invalidate the trendline and could go to $0.90-$0.91.
Trade setups:
- Bearish: Short below $0.82, target $0.77-$0.73, stop above $0.85.
- Bullish: Long above $0.85, target $0.90-$0.91, stop below $0.80.
ADA is compressed between support and resistance, get ready for a big move soon.
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