Social Media Loves Cardano, But The Chart Signals Caution
Cardano (ADA) faces caution despite rising optimism among supporters, as technical indicators show bearish signals. The price remains under critical resistance around $0.71, with a bearish engulfing pattern indicating potential downward momentum. Social media sentiment for ADA has surged, with a positive comment ratio of over 3.5 to 1, the highest in four months, following SEC classification of ADA's use case. However, this optimism has not translated into price gains. ADA is currently below the 20-week EMA at $0.7883, with support levels at the 50-week EMA ($0.6679), 100-week EMA ($0.59), and 200-week EMA ($0.5255). Key resistance levels include the 0.236 Fibonacci retracement at $0.8990. The broader altcoin market is influenced by Bitcoin dominance and macroeconomic conditions, with the upcoming FOMC meeting expected to impact risk assets significantly.
