However, over the last seven days, Cardano’s price has dropped by 10%, after failing to break the resistance at $0.90.
Today, ADA trades at $0.78. In this analysis, CCN reveals why the altcoin risks a deeper drop rather than a quick bounce in the short term.
Cardano’s $0.90 Standoff Ends in Defeat
Cardano’s price surged to $0.90 after breaking out of a descending channel that stretched from May 12 to July 19, during which the price fell from $0.86 to $0.54.
The breakout came as the Chaikin Money Flow (CMF) flipped positive, signaling renewed buying interest and fueling ADA’s rally. But that momentum may be cooling.
As of this writing, the CMF has turned lower, suggesting that buying pressure is fading.
Try Our Recommended Crypto Exchanges
Sponsored
Disclosure
We sometimes use affiliate links in our content, when clicking on those we might receive a commission at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.
With resistance still strong at $0.90, ADA now risks a pullback toward $0.72, a key resistance-turned-support level. Failure to hold that zone could open the door to a deeper correction, potentially down to $0.57.
Zooming in on the daily chart, the Awesome Oscillator (AO) has flipped negative, with red histogram bars flashing across the board.
Much like the CMF, the AO confirms that momentum is shifting from bullish to bearish.
If this trend holds, the weakening momentum could accelerate ADA’s price decline.
Breakdown Inevitable
Adding to the bearish case, Cardano’s price-to-Daily Active Addresses (DAA) divergence has plunged to -104.26%, according to Santiment.
This metric compares price action with user activity on the network.
A negative divergence means the price is holding steady while on-chain activity is falling.
In this case, the sharp -104% reading signals that Cardano’s market value is decoupling from its actual usage, a classic warning sign of an unsustainable rally.
Historically, when price-DAA divergence turns this negative, it precedes price corrections, as weak network engagement undercuts bullish momentum.
Unless daily activity picks up, ADA’s price may struggle to maintain current levels and risk further downside.
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.
