Market Overview for Cardano (ADAUSDT) on 2025-08-21

• ADAUSDT tested key resistance at $0.88–$0.89 but failed to hold, reversing sharply after a large bearish engulfing pattern.
• RSI and MACD signal overbought conditions at peak and oversold near close, indicating volatile but indecisive momentum.
• Volume spiked during the reversal phase, confirming bearish conviction, but turnover failed to match bullish legs.
• Bollinger Bands expanded significantly during the 19:00–20:00 ET sell-off, suggesting increased short-term volatility.
• Fibonacci retracement levels suggest critical support near $0.864 and resistance near $0.886 for near-term price action.

Cardano (ADAUSDT) opened at $0.8752 on 2025-08-20 at 12:00 ET and reached a high of $0.8925 before closing at $0.8673 on 2025-08-21 at 12:00 ET. Total volume for the 24-hour period was 48.1 million ADA, with notional turnover amounting to $42.5 million.

Structure and Patterns

ADAUSDT formed a strong bearish engulfing pattern at $0.886–$0.8815 between 19:30–20:00 ET, which coincided with a sharp sell-off into $0.877. A potential double-top structure developed between $0.886 and $0.8925, with a breakdown below $0.876 confirming bearish sentiment. A bearish harami was also seen at $0.884–$0.8854, hinting at hesitation ahead of the final breakdown.

Key Levels and Moving Averages

On the 15-minute chart, ADAUSDT closed below the 20-period (0.8786) and 50-period (0.8817) moving averages, signaling bearish bias. The 200-period daily moving average currently sits at $0.870, which may serve as a critical support level ahead.

Momentum and Volatility

Relative Strength Index (RSI) surged above 70 during the peak at $0.8925, indicating overbought conditions and foreshadowing a reversal. MACD crossed below the signal line during the 19:30–20:00 ET sell-off, reinforcing bearish momentum. Bollinger Bands widened significantly during the breakdown phase, suggesting a period of high volatility.

Volume and Turnover

Volume surged during the breakdown phase (481,319.5 ADA at $0.8812) and the bearish engulfing pattern (301,4676.9 ADA at $0.8863), suggesting strong conviction in the downward move. However, turnover failed to confirm bullish legs, indicating weaker buyer participation during the rally phases.

Fibonacci Retracements

The 61.8% Fibonacci retracement of the $0.868–$0.8925 rally lies at $0.878, where ADAUSDT stalled before retreating. The 38.2% level sits at $0.880, which may now act as a resistance. Critical support levels include $0.8682 (61.8% of the sell-off from $0.8815) and $0.8588 (38.2% of the sell-off from $0.8785), which will be key to watch for tomorrow.

ADAUSDT appears to have broken down from the $0.88–$0.89 resistance zone and could test support at $0.865–$0.868 in the near term. Traders should watch for a potential bounce off the 200-period daily moving average at $0.870 and confirm whether bearish momentum will carry further or reverse. As always, sharp price swings and high volatility remain key risks to watch.