ADA is likely to keep trading downward | Credit: Hameem Sarwar
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Key Takeaways
ADA remains range-bound, with strong resistance at $0.27 and support near $0.24.
Momentum is weakening, as MFI trends downward and BBP turns negative.
Breakdown risk is rising, with a $0.25 loss likely to trigger a move toward $0.23.
Cardano’s (ADA) breakout attempt has stalled, as the price keeps failing at key resistance.
Meanwhile, momentum is fading fast. As a result, the altcoin might struggle to break out of its long-standing downtrend.
At the time of writing, Cardano’s price hovers around $0.26, down 3% over the past 24 hours. Unless bulls step in soon, ADA could remain trapped in a prolonged consolidation phase.
Cardano Recovery Doubtful
ADA is losing short-term strength. Price action is compressing near a key level. Meanwhile, key technical indicators are turning cautious.
On the 4-hour chart, ADA trades around $0.26, holding just above a critical support zone at $0.24-$0.25.
However, repeated rejections near $0.29 continue to cap upside. This creates a clear range-bound structure, with neither side in full control.
The recent lower high confirms weakening bullish pressure. At the same time, sellers are gradually stepping back in.
Momentum signals have turned mixed. The Money Flow Index (MFI) sits near 46, signaling neutral conditions.
Meanwhile, the Bull Bear Power (BBP) indicator has flipped slightly negative. Although the shift is minor, it shows that bears are beginning to regain influence. As a result, upside continuation now looks less convincing.
Cardano’s price action is compressing within a narrowing band. This typically precedes volatility.
However, direction remains uncertain. A clean break below $0.25 could trigger a deeper move. In that case, downside targets may extend to $0.24
Coin Struggles Extend Beyond the Setup
Liquidation data shows that Cardano has largely cleared its excess leverage. Recently, short liquidations totaled about $1.25 million, while long liquidations totaled $444,000.
This imbalance suggests bearish positions are being removed more aggressively.
Still, overall volumes are low compared to the $100 million+ liquidation spike in October that triggered a sharp market reset.
More recently, flows have stayed muted, highlighting weak speculative activity. However, short liquidations slightly outweigh long liquidations, leading to intermittent short squeezes rather than sustained bullish momentum.
Smaller long liquidations continue to appear, showing that upside attempts remain under pressure.
Meanwhile, the price drifts lower in a controlled manner, reflecting declining volatility.
Without a major liquidation spike to reset positioning, ADA’s price is likely to remain range-bound. The market currently lacks the conviction required for a decisive breakout.
ADA Price Forecast: Downtrend Intact
On the daily timeframe, Cardano’s price is stabilizing within a broader downtrend, consolidating near $0.26 while holding above $0.22.
The structure remains bearish as ADA trades within a descending channel, printing lower highs that cap upside attempts. However, the repeated defense of $0.22 suggests sellers are gradually losing momentum.
Meanwhile, the Awesome Oscillator (AO) is flattening, with fading red bars and brief green prints, signaling weakening bearish pressure. However, this shift lacks conviction.
At the same time, the Relative Strength Index (RSI) is turning downward near the mid-40 range, indicating that buying strength is fading after a short-lived recovery.
ADA’s price is now approaching a key Fibonacci confluence, with the 0.236 level near $0.40 acting as overhead resistance.
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.
