Why is Cardano Going Down? | Credit: Hameem Sarwar
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Key Takeaways
Cardano continues to slide inside a descending parallel channel.
The token now trades firmly below the key $0.60 horizontal resistance level.
With ADA struggling to regain that zone, the market is weighing two possibilities.
Cardano (ADA) has slipped to the lower boundary of a year-long parallel channel, deepening its multi-month decline.
After months of holding firm above the key $0.60 support level, ADA finally broke below it this week, flipping the zone into resistance and signaling renewed bearish pressure.
Unless the price can reclaim $0.60 and establish it as support again, the path of least resistance points lower.
Here’s what the charts suggest about ADA’s chances of staging a bullish reversal.
Why Is Cardano Going Down?
Cardano has been trending lower ever since its December 2024 cycle peak, when ADA briefly touched $1.33.
Since then, the price has moved within a descending parallel channel, typically a corrective structure that eventually resolves with an upside breakout.
This time, that breakout never came.
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The October drop sent ADA down to $0.27, where it found temporary support along the channel’s lower trend line.
From there, the token managed a sharp rebound and pushed back above the key $0.60 level, briefly restoring a bullish structure.
But that recovery was short-lived.
Within two weeks, ADA slipped back below $0.60, turning the area into confirmed resistance. The token now trades comfortably beneath it, reinforcing the broader bearish trend.
Unless Cardano can reclaim $0.60 and convert it into support, the long-term outlook remains tilted to the downside.
Once that recovery phase ended, the token rolled over into a clear five-wave decline, with price action now sitting in what looks to be wave four of that move.
If today’s bounce extends further, this zone is expected to serve as the range high before sellers step in again.
The technical indicators back up the caution. Neither the RSI nor the MACD has formed a bullish divergence, suggesting that momentum does not support a sustained reversal.
Taken together, the daily outlook remains firmly bearish. Any brief recoveries are likely to be corrective rather than the start of a new uptrend.
Bearish Trend Continues
ADA broke down from its long-term horizontal support, and momentum indicators have turned bearish.
Unless ADA reclaims the $0.60 support area, all signs point to a sustained decline that will lead to new lows.
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.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
