ADA formed a cup and handle pattern, but sellers invalidated the setup
The CMF remains negative, showing that inflows aren’t yet strong enough
Failure to break the $0.83 resistance could drive ADA to $0.79 or lower.
This week did not start well for Cardano (ADA). On Monday, Sept. 21, the price briefly dropped below $0.80.
Today, it appears to have stabilized as Cardano’s price bounced to $0.82. Yet, this price action does not suggest an extended rally is imminent.
Cardano Tries to Recover
On the 4-hour chart, Cardano’s price traced out a cup and handle formation, one of the most recognized bullish continuation patterns.
The “cup” formed as ADA’s price declined gradually before carving out a rounded bottom and rebounding to retest its previous high.
This shape reflects a phase where sellers lose momentum and buyers slowly regain control.
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Following that, the “handle” developed as a brief period of consolidation and slight downward drift.
Handles appear as small pullbacks or sideways action, which serve to shake out weak hands before the next leg higher.
Unfortunately, the expected breakout from the cup and handle pattern never materialized. Instead, sellers dragged ADA’s price below the handle’s lower trendline, stalling momentum.
This weakness was clear in the Chaikin Money Flow (CMF), which fell to -0.33 on Monday.
While it has since improved to -0.14, it remains below the zero line. This means capital inflows still aren’t strong enough to validate an uptrend.
For a true bullish breakout, Cardano’s price needs to clear resistance at $0.88 and retest the neckline at $0.92.
Until that happens, the setup remains incomplete, and the altcoin is likely to stay in consolidation mode.
ADA Price Still Stuck
On the daily chart, CCN observed a structure that mirrors the 4-hour setup — bearish overall, but showing early signs of stabilization.
The Awesome Oscillator (AO) remains in negative territory, confirming that momentum is still tilted to the downside.
However, the indicator has begun flashing green histogram bars, suggesting that selling pressure is slowing and that stabilization may be underway.
Even so, ADA’s price remains below the 20-period Exponential Moving Average (EMA), keeping the broader trend under bearish control for now.
A decisive move above this EMA would be needed to strengthen the case for a recovery.
However, it does not seem like Cardano’s price will experience a sustained recovery soon. Should buying pressure fail to increase, ADA might find it challenging to breach the $0.83 resistance.
If that happens, ADA’s price might decline to $0.79 or lower if bears take full control. Conversely, a successful breakout above the resistance might change things.
In such a scenario, Cardano might rise $0.89 at the 0.618 golden ratio. In a highly bullish case, it could hit $0.95 again.
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.
