Cardano Plummets 12.631% in 24 Hours, Faces Bearish Trend

Cardano's latest price was $0.5723, down 12.631% in the last 24 hours. The cryptocurrency is currently facing significant selling pressure as it tests a crucial support zone. The bearish sentiment is evident on the 4-hour chart, with multiple technical signals suggesting a potential continuation of the downward trend unless buyers intervene soon. The key support zone is between $0.60 and $0.62, and a breakdown could open the door to a deeper move toward $0.55. Conversely, the resistance zone is between $0.70 and $0.75, and reclaiming this area could shift short-term sentiment and target the next resistance at $0.80. The trend remains decisively bearish, with consistent lower highs and failed breakout attempts. Volume has also been declining, reflecting weakening bullish conviction and sustained control by sellers. The MACD remains below the signal line and in negative territory, indicating continued downside momentum. The RSI is estimated between 30–40, showing bearish momentum but hasn’t yet entered oversold territory. Bollinger Bands likely show price hugging the lower band, suggesting persistent pressure with a possible volatility expansion if support fails. Technical patterns such as a descending triangle, bear flag, double top formation, and rounded top all point to potential downside continuation. Cardano is teetering at a critical point, and a break below $0.62 could accelerate the sell-off to $0.55, while a push above $0.70 may ignite a short-lived relief rally toward $0.75–$0.80. However, momentum and structure currently favor the bears. Cardano is caught in a bearish grip, with multiple indicators and patterns pointing to potential downside continuation. Unless buyers step in at key support with strong volume, further losses remain likely. Traders should monitor for a confirmed breakout or breakdown to guide their next move.

Cardano has experienced a significant decline, crashing by over 51% from its highest level in November last year. The recent decline is mostly in line with the performance of other cryptocurrencies. There is a risk that the ADA price will continue downward in the next few weeks as a death cross pattern nears. A death cross forms when the 200-day and 50-day Exponential Moving Averages cross each other while pointing downwards. In Cardano’s case, the spread between the two moving averages has narrowed in the past few months. The 200-day MA stands at $0.729, while the 50-day one is at $0.736. The spread stood at over 20% a few weeks ago. A death cross often leads to a substantial decline over time. For example, the last time that Cardano price formed this pattern was in May last year, and the coin dropped by over 40%. The opposite of a death cross is known as the golden cross. Cardano formed this cross in November last year, leading to a nearly 200% price surge. Worse, Cardano has also formed a descending channel comprising a series of higher lows and lower highs. It also formed a head-and-shoulders pattern, a popular bearish continuation sign. Therefore, if the death cross pattern forms fully, the coin will likely continue falling in the next few days. If this happens, the next potential target will be $0.515, its lowest level in February this year. Cardano price faces some major fundamental challenges too. The most visible one is that its ecosystem dwarfs that of other blockchains. The total value locked in the network has dropped to $314 million. In contrast, other recently launched chains with much smaller market caps, like Berachain, Sonic, Sui, and Sei have much higher assets in their DeFi networks. Berachain has over $2.97 billion in assets, while Sui has $1.2 billion. The same is true with Cardano’s stablecoin assets, a notable figure since all transactions in the blockchain industry are conducted in these tokens. Cardano has just $30 million in stablecoins compared to Berachain’s $1.3 billion and Sonic’s $576 million. Further, some of the most anticipated Cardano catalysts have not happened. For example, its integration with BitcoinOS, which was announced in October last year, has not been launched. Also, it is unclear whether the much-anticipated meeting between Cardano founder Charles Hoskinson and a VIP happened and its outcomes. While a potential ADA ETF is a positive catalyst, the ongoing ETH ETF outflows indicate that investors are largely interested in spot Bitcoin funds alone.