Will the Cardano Price Keep Going Down? | Credit: Hameem Sarwar
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Key Takeaways
Cardano (ADA) trades inside a descending parallel channel.
ADA prevented a breakdown from the $0.60 support area.
Can ADA bounce again, or will the crypto market fall to new lows?
Cardano (ADA) continues to face downward pressure, moving within a long-term descending channel that has confined its downward movement for a year.
Despite several attempts to hold the $0.60 level, ADA shows no strong signs of a bullish reversal, leaving the possibility of a breakdown open.
The most critical area is $0.60; a breakdown below it could send the price to a new yearly low.
Cardano’s Technical Analysis
The weekly time frame chart shows that ADA has fallen since its cycle high of $1.33 in December 2024.
In the 329 days since the high, the price of ADA has fallen inside a descending parallel channel, which is considered a corrective pattern.
While a breakout from the corrective channel would be the most likely movement, the price of Cardano has not indicated a bullish trend.
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On the contrary, ADA fell to a low of $0.27, validating the channel’s support trend line and breaking down from the critical support at $0.60 before bouncing.
Even though ADA has bounced at this support area four times (green icon), it trades barely above it, suggesting that the subsequent breakdown could be legitimate.
If ADA’s price bounces, it will face stiff resistance at $0.85, reaching a horizontal resistance area and the channel’s resistance trend line.
Momentum indicators are also bearish. The Relative Strength Index (RSI) is below 50, while the Moving Average Convergence/Divergence (MACD) is negative.
So, the Cardano prediction is bearish, confirmed with a weekly price close below $0.60.
If that happens, the most likely future outlook is a decline toward the cycle low and the channel’s support trend line at $0.20.
Will Cardano Break Down?
The daily technical analysis shows that Cardano’s bounce since April is corrective and is an A-B-C structure (red), where wave C created an ending diagonal.
ADA confirmed its bearish trend with a breakdown from the wedge, and the price has now fallen below multiple horizontal support levels, the most recent at $0.72.
The only positive sign is the bullish divergence in the daily RSI, but that alone cannot predict a bullish trend reversal.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
