ADA Price Watch: Momentum Fades Below $0.80 — Will the Final Week of September Spark a Reversal?

Cardano (ADA) enters the final trading days of September in a precarious position, trading just below the crucial $.80 psychological barrier. The asset has endured sustained selling pressure throughout the week, weighed down by a combination of technical resistance, profit-taking, and broader market uncertainty.

Despite these headwinds, however, signs are emerging that a potential reversal could be on the horizon. With key momentum indicators flashing early bullish signals and ADA consolidating near a critical support zone, the next 24 hours could set the stage for either a relief rally or a continuation of the downtrend.

Price Overview: Bears Dominate, But Bulls Are Stirring

As of the latest 4-hour session, ADA is trading at $0.7738, posting a modest 1.6% decline after dipping as low as $0.7571. The price action reflects a classic consolidation pattern following a steep decline from the $0.95 resistance zone earlier this month.

This region, around $0.75 to $0.78, is now acting as a pivotal battleground. Bulls must defend it to avoid further declines, while bears are attempting to break below it and push ADA toward the next support band near $0.70.

Technical Analysis: EMA Alignment Confirms Bearish Momentum

The Exponential Moving Averages (EMAs) offer a clear view of the prevailing bearish sentiment.

20 EMA (~$0.7957): Currently acting as immediate resistance. ADA needs to break
above this level to gain short-term bullish momentum.
50 EMA (~$0.8286): A breakout above this mid-term level would strengthen bullish conviction.
100 EMA (~$0.8474) and 200 EMA (~$0.8504): These long-term EMAs remain well above the current price, highlighting a firmly bearish macro trend.

The downward slope across all EMAs reinforces the dominance of sellers. Until ADA can reclaim at least the 20 EMA, the broader market structure remains in favour of the bears.

RSI Signals Potential for a Rebound

While EMAs paint a bearish picture, the Relative Strength Index (RSI) suggests that a potential reversal could be approaching. Currently reading around 8.05 on the divergence indicator, ADA is entering oversold territory. Historically, such conditions have preceded short-term relief rallies as sellers exhaust momentum and opportunistic buyers step in.

Additionally, the RSI shows early signs of bullish divergence, indicating that downward momentum is weakening even as price continues to test support. This divergence often acts as a leading indicator of a potential trend reversal.

Support and Resistance Levels to Watch

Immediate Support: $0.7500 – $0.7700
This zone is ADA’s most critical support level. A breakdown below it could accelerate losses toward the $0.7000 region.
Immediate Resistance: $0.7957 – $0.8286
A successful breakout above the 20 EMA would open the door to further upside toward the $0.8500 range. However, failure to reclaim this level would likely see ADA remain trapped in a sideways-to-downward range.

Short-Term Outlook: Reversal or Further Decline?

The next 24 hours are crucial for Cardano. If bulls manage to defend the current support zone and push price action above the 20 EMA, it could trigger a short-term rally toward the $0.83 – $0.85 resistance band. Such a move would also help reset momentum indicators and potentially attract fresh capital into ADA.

However, if sellers regain control and push prices below $0.75, the path toward $0.70 becomes highly likely. This would mark a continuation of the broader bearish trend and could delay any meaningful recovery attempts into October.

Final Thoughts: ADA’s Make-or-Break Moment

Cardano is at a decisive juncture as September draws to a close. Despite the recent downtrend, oversold signals on the RSI and consolidation near key support levels suggest that a rebound is not out of the question. Still, the onus is on buyers to reclaim momentum — and failure to do so could result in another leg down.

In short, the next 24 hours will reveal whether ADA’s consolidation is a prelude to a relief rally or simply a pause before further declines.

Olasunkanmi Abudu

Olasunkanmi Abudu is a Web3 content writer with over five years of experience covering blockchain, decentralized finance, and digital assets. He specializes in producing well-researched and accessible content that explains complex technologies and market trends to both general readers and industry professionals.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.