Cardano’s sellers still control the trend | Credit: Hameem Sarwar
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Key Takeaways
Cardano (ADA) remains in a downtrend, with weak momentum.
If ADA breaks below the $0.34 support, the price could drop to $0.30.
A bullish reversal only becomes likely if ADA reclaims key resistance.
Cardano (ADA) is closing out the year on unstable footing as sustained selling pressure keeps the asset locked in a broader downtrend.
Despite brief stabilization attempts, ADA’s price has failed to attract consistent buying volume. This has left the price action compressed below key resistance zones.
With overall market participation slowing and sellers maintaining control, Cardano’s price now faces a critical test of its structural support zones.
If the altcoin fails to defend these levels, ADA could slide below the psychological $0.30 mark.
Cardano Momentum Remains Weak
On the 4-hour timeframe, the Relative Strength Index (RSI) remains below the neutral 50 level, indicating weak momentum.
Capital flow data further reinforces this cautious outlook. As seen below, the Chaikin Money Flow (CMF) remains slightly negative at -0.01, signaling that inflows continue to struggle against outflows.
While the reading is not aggressively bearish, it reflects a market lacking substantial accumulation. Therefore, buyers remain largely sidelined as sellers retain marginal control.
Furthermore, Cardano’s price continues to trade below a critical resistance band around the $0.38 region, which has repeatedly restricted upswings.
This failure to reclaim the level keeps the broader trend tilted to the downside, with Cardano’s price now compressing within a lower range near $0.35.
If bearish pressure persists, downside risk remains elevated toward the $0.30 psychological level, which stands as the next central support zone.
At the same time, the Average Directional Index (ADX) reads 36, confirming a strong and accelerating trend.
The Awesome Oscillator (AO) adds further weight to the bearish structure.
While printing green histogram candles within negative territory, the indicator suggests that selling pressure is easing slightly. As such, this has offered little confirmation of a trend reversal.
The oscillator’s position below the zero line signifies continued seller control, with recent buying activity appearing corrective.
ADA Price Analysis: Bearish
On the daily chart, ADA remains confined within a descending channel, consistently forming lower highs and lower lows.
At the time of writing, Cardano’s price hovers near the $0.35 level, an area that has served as a historical support zone across multiple market cycles.
Looking at the Fibonacci retracement levels, we get additional insight into Cardano’s price action.
Currently, the cryptocurrency is trading very close to the 0.5 Fib level at $0.34. Based on the current trend, the altcoin is likely to break down below this level.
If that happens, Cardano’s price could decline below the $0.30 region.
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.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
