Cardano News Today: Cardano's ADA in Freefall: Technical and On-Chain Headwinds Prevail Over Founder's Optimism

Cardano's ADA price has fallen below the $0.50 support level, a critical threshold that had held since early 2024, raising fresh concerns about the cryptocurrency's near-term prospects. The breakdown, confirmed by technical analysts and on-chain data, has triggered bearish signals, including a forming pennant pattern and a directional movement index (DMI) showing overwhelming selling pressure according to technical analysis. Traders are now bracing for further downside, with key targets eyed at $0.40 and potentially $0.30 if the current trend persists according to financial analysis.

The recent collapse comes amid mixed reactions from Cardano's founder, Charles Hoskinson, who has doubled down on long-term optimism despite the sharp selloff. In a social media post on November 16, he urged the community to "summon the gigachad bullrun we all deserve," while criticizing what he described as excessive cynicism in the crypto space. His comments follow a week in which ADA plummeted nearly 20%, mirroring broader weakness across altcoins as risk appetite waned. Galaxy Research data underscores the depth of the downturn, with 72 of the top 100 cryptocurrencies trading more than 50% below their all-time highs.

Technical indicators paint a grim picture for ADA's immediate trajectory. The DMI shows the -DI line at 33.15 far exceeding the +DI at 9.85, confirming a dominant bearish trend. Meanwhile, the average directional index (ADX) reads 47.38, signaling a strong and sustained downward move. On the four-hour chart, ADA's price action has consolidated into a bearish pennant, with a breakout below the $0.50 level reinforcing expectations of further declines. Analysts note that without a sustained rebound above $0.55-the 20-day exponential moving average- the asset remains vulnerable to deeper corrections.

The selloff has been amplified by on-chain liquidity challenges, highlighted by a high-profile incident in which a Cardano holder lost $6.09 million in a single trade. The user attempted to swap 14.4 million ADA (worth ~$7 million) into the USDA stablecoin on the Minswap decentralized exchange, but the trade executed at an 87% slippage due to thin liquidity pools, leaving the wallet with just 847,694 USDA. The incident has reignited debates about Cardano's DeFi infrastructure, with critics arguing that insufficient stablecoin liquidity and inadequate user safeguards expose traders to extreme risks. Hoskinson, while acknowledging the "teachable moment," has resisted calls to intervene, emphasizing that liquidity improvements must come from the ecosystem.

Despite the near-term turmoil, some analysts detect early signs of stabilization. ADA has found temporary support near $0.45, with undervalued MVRV ratios and positive funding rate shifts suggesting potential for a short-term rebound according to price prediction analysis. However, these signals remain fragile without broader buying pressure or a shift in macro sentiment. The cryptocurrency's total value locked (TVL) in DeFi stands at $211 million, down 8.4% in 24 hours, reflecting continued outflows.

As the market digests these developments, traders are closely watching whether ADA can defend the $0.45 level or if the selloff will accelerate toward $0.30. For now, the asset's trajectory remains tethered to broader crypto market dynamics, with Hoskinson's bullish rhetoric offering little immediate relief against the weight of technical and on-chain headwinds.