Cardano has dropped 11.2% over eight straight days of losses, giving up a local support zone after last week's bullish break. Chart structure still points to a retracement rather than a reversal, with a defined buy zone between $0.165 and $0.175 and a downside line traders are watching at $0.153.
Cardano has shed 11.2% of its value since opening at $0.201 on Friday, August 7, with eight consecutive red trading days. The token has also ceded the $0.185-$0.190 local support zone to sellers. The slide follows a bullish structure break on August 6, when momentum from the Dijkstra era rollout had lifted the token.
Fibonacci levels mark the next buy zone
The daily chart's swing structure remains bullish, with a recent swing high at $0.211 still in place. Because of this, the current slide reads as a retracement rather than a trend reversal, using Fibonacci retracement analysis. The tool marks the $0.165-$0.175 area as the golden pocket, between the 78.6% and 61.8% retracement lines, and price already sits below the 50% level in a discount zone. So long as a daily session does not close below $0.153, traders can anticipate a move back above $0.211.
Bearish momentum on lower timeframes
On the four-hour timeframe, however, technical indicators stay firmly bearish. The OBV has declined over the past eight days, and the MACD sits well below the zero line, showing sustained bearish momentum. The DMI also points to a strong downtrend, with both the ADX and the -DI reading above 20.
Yet this four-hour downtrend may still be only a retracement phase within the larger bullish structure. As a result, swing traders are watching for the key Fibonacci levels to be tested before acting. An uptick in trading volume and buying pressure, together with a turnaround in the OBV, would signal that the retracement phase is ending — similar to the pattern seen when Cardano climbed toward $0.211 near the end of July.
Source: AMBCrypto
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