Cardano (ADA) has seen a strong decline thus far in May, with the price breaking down from an important pattern in the daily time-frame and risking a fall below a critical horizontal support level. Technical indicators confirm the bearishness of the trend, with the Relative Strength Index (RSI) arguably proving especially useful in this regard, falling below 50 shortly after the price broke out from an ascending parallel channel on April 20th. The shorter-term 6-hour time-frame corroborates this sentiment, revealing that the ADA price has been beneath a descending resistance line from April 15th. In the present, the price currently trades at a confluence of support levels at $0.36, formed by a horizontal support area and the 0.618 Fibonacci retracement level. Any break of this critical support point is likely to see a further fall to the daily time-frame support at $0.33 and potentially even as low as $0.30, while an eventual breakout could see the price rally toward $0.42.



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