Cardano has declined 10% in the past week, slipping into a descending parallel channel.
ADA’s Daily Active Addresses divergence dropped, signaling weakening network demand.
If support at $ 0.77 fails, ADA risks falling to $0.67; however, a breakout could flip sentiment.
Cardano (ADA) price action once looked like a steady uptrend. But as of this writing, it has turned fragile following its 10% decline over the past week.
While Cardano’s price has weathered huge sell-offs before, the current situation does not look like one of those times. Instead, the technical setup looks weak, with indicators predicting it could trade lower.
Cardano Collapse Raises Alarm
Unlike its earlier setup, Cardano’s price has slipped into a descending parallel channel, signaling mounting bearish pressure. At the same time, the MACD reading has dipped into negative territory, confirming the shift in momentum.
The chart also reveals a bearish crossover, with the 12 EMA (blue) sliding below the 26 EMA (orange). This formation typically strengthens selling signals and raises the likelihood of further downside unless buyers step in to defend key support levels.
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However, while ADA has failed to break the resistance at $0.93, it now risks falling below key support levels. As of this writing, the altcoin is flirting with support at $0.84.
Failure to hold that level could lead to another decline with $0.77 as the next support level.
From an on-chain perspective, Cardano’s outlook tilts bearish. The Daily Active Addresses (DAA) divergence has plunged to -115.02%, a drop that signals waning network activity relative to price action.
This divergence suggests that recent price action moves lack strong user support, making rallies unsustainable. When fewer addresses interact on-chain, it usually points to weakening demand and potential exhaustion among buyers.
Therefore, if this trend persists, ADA’s price could face increased selling pressure, raising the risk of downward pressure in the coming days.
On the contrary, if the BBP turns positive, buyers might help ADA break the resistance at $0.93. If that were to happen, this prediction might be invalidated, and ADA might bounce to $1.19.
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.
