Cardano price dips, entering fragile territory after breaking key support | Credit: Hameem Sarwar
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Key Takeaways
Cardano’s breakdown from a rising wedge triggered strong selling pressure.
The BBP indicator confirms ADA sellers’ dominance and weak momentum.
The daily chart reveals a drop below the 20 EMA, predicting an extended decline.
Cardano’s (ADA) price has entered a fragile zone after sliding below a key support level. Following the setback, ADA is unlikely to test $1, raising questions about the altcoin’s potential before the end of 2025.
In this analysis, CCN explains what led to the recent drop and the levels Cardano’s price is likely to reach in the short term.
Cardano Breaks Down From Rising Wedge
At press time, Cardano trades at $0.68, marking a 20% decline over the past seven days. The drop happened due to the broader market correction, as several cryptos capitulated amid macroeconomic uncertainty and declining risk appetite.
From a technical perspective, the 4-hour chart reveals that ADA’s price had been trading inside a rising wedge pattern — typically a bearish formation that signals a potential reversal after an extended climb.
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However, that structure has now broken down, with the price falling below the key support at $0.72.
This decisive breach triggered accelerated selling pressure, confirming the start of a deeper correction.
Cardano’s price could retest the next support zone at $0.63 if momentum remains bearish. Failure to defend that level might allow a further slide.
Despite that, the Moving Average Convergence Divergence (MACD) is positive and has formed a bullish crossover. Typically, this should help ADA’s price stabilize while aiming to trade higher.
But the Awesome Oscillator (AO) has flashed a negative reading. Due to this disparity in the position of the indicators, ADA might experience a sideways trend in the short term.
Analysis of the daily chart also presents a bearish bias. According to the image below, Cardano’s price has been trading in a descending channel since mid-August.
However, the technical setup has become worse, and ADA has fallen below the lower trendline. In addition, the altcoin has fallen below the 20-day Exponential Moving Average (EMA).
As shown below, the 20 EMA (blue) is currently around $0.78, having previously served as a crucial support level. However, since ADA’s price has fallen below it, the crypto risks extend the recent decline.
In addition, the Bull Bear Power (BBP) is in the negative region, indicating that sellers have the upper hand.
If this remains the same, Cardano’s price might drop below the underlying support at $0.63. Once that happens, the next target for the altcoin could be $0.51.
However, if buying pressure increases, this trend could change. In that scenario, ADA’s price might rise above the $0.72 resistance.
A move like that could help ADA hit $0.83 at the 0.618 golden pocket ratio. In a highly bullish market condition, the market value might rise to $1.02.
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.
