Cardano Price Rebound or Breakdown: Trendline Test Sparks Uncertainty

Cardano's (ADA) price is retesting a key trendline that has attracted buyers on nearly every touch. This trendline has been in place for weeks, with ADA's price climbing along it and buyers stepping in to support it.

The third test of this trendline was particularly notable, as it sparked an almost 12% upmove before the price pulled back to retest the line again. Support from the 50 EMA extended that move further, but the price has since turned back down to retest the trendline once more.

Now, the chart is showing rejection at this retest, and the momentum oscillator RSI has flagged two bearish divergence signals during this move. This suggests that momentum has been fading beneath the surface even as price kept climbing.

The setup remains undecided while price trades inside the $0.1999 range, but a confirmed close above or below certain levels could change the trendline structure. If ADA closes above $0.2205, it could move toward $0.2322, while a close below $0.1668 would suggest the trendline structure is breaking down.