Cardano (ADA) is facing intensified bearish pressure as the crypto market shows signs of exhaustion. With ADA battling to hold the psychological $0.50 level, traders are keeping a close eye on critical support zones that could determine the asset’s short-term direction. The latest dip in Bitcoin, falling momentarily below the $75,000 mark, has contributed to a wider market pullback, with ADA reaching a 24-hour low of $0.51. At press time, the token is trading around $0.5482, reflecting an intraday decline of 4.38%.

The daily price chart of Cardano paints a bearish picture. ADA has broken below a key consolidation range and is approaching a long-established ascending support trendline. This trendline has historically served as a launchpad for bullish reversals since late 2024. However, current market conditions remain fragile, and ADA’s failure to maintain key Fibonacci support levels has raised concerns of a deeper correction.

Following a steep 12.41% drop over the weekend, Cardano now sits precariously near the 23.60% Fibonacci retracement level at $0.5346. A close below this level could invalidate the bullish outlook, triggering further downside momentum. Despite this, the token is still clinging to the $0.50 support zone, signaling that buyers are not yet ready to surrender.

One of the major concerns among technical analysts is the looming death cross on Cardano’s daily chart. The 50-day exponential moving average is nearing a crossover below the 200-day EMA — a well-known bearish signal that often precedes significant price drops. If this crossover occurs, it would further reinforce bearish sentiment and potentially drive selling pressure.

In terms of momentum, the True Strength Index (TSI) currently stands at -0.91, indicating a strong bearish trend. This aligns with the downward trajectory seen in recent trading sessions. However, a reversal is still possible if ADA manages to print a long-tailed bullish candle at the current Fibonacci level, which could suggest buyer re-entry and short-term strength.

Should a bullish bounce occur from current levels, ADA could aim for the next Fibonacci resistance at the 38.20% level, located at $0.6673. This would represent a 20% upside potential from its current position. However, for this scenario to materialize, Cardano must avoid a daily close below $0.5346, as that would open the door to a deeper decline toward $0.32 — a level last seen in early 2024.

For now, Cardano’s price action remains at a critical juncture. The battle between bulls and bears continues at the $0.50 zone, and the next few trading sessions will be pivotal. If support holds, a short-term relief rally could unfold. If not, ADA holders may need to brace for a prolonged correction.