Cardano (ADA) is currently trading at $0.4952, holding just above a key support level that has been significant since 2024. Analysts have flagged that breaking this zone could trigger further downside.
The weekly chart shows ADA in a clear corrective phase, with sellers controlling the market and pushing prices lower.
Volatility has expanded over recent weeks, evident in the widened Bollinger Bands, while the 20-week moving average sits far above the current price, highlighting the gap between the short-term trend and actual trading levels.
Weekly candles continue to form lower highs and lower lows, reinforcing the bearish structure. Indicators confirm the weakness. The Range Oscillator is deep in negative territory at –116, reflecting strong selling momentum.
While the RSI sits near 37, hovering close to oversold levels, it does not signal an imminent reversal. Historical volatility remains moderately high at 55, showing that swings are likely to continue as traders respond to market pressure and uncertainty.
Also Read: Cardano Momentum Improves as Openbank Brings ADA to Millions in Spain
Traders are eagerly waiting to see if ADA is able to sustain above its level of support. As per Mr. Brownstone, ADA’s recent market movement might actually signify a “running flat,” which is a wave within Elliott Wave Theory during which the second wave C is less pronounced than wave A.
Based on this scenario, ADA might actually bottom out at wave 2, marking a low-risk buy scenario, but if ADA breaches its level of support, it could fall to its next level at $0.43.
The MACD confirms this selling pressure with a bearish crossover, with the MACD line at -0.01098 and the signal line at -0.03981. The histogram is still negative, and the bar is growing, indicating increased momentum on the selling side.
Until the ADA is above the mid-band Bollinger Band and above the 20-week moving average, technical analysts recommend that the market is likely to remain in a downtrend.
Despite this bearish formation, analysts believe there is a chance to profit via a correction. ADA could see a rally to $0.67-$0.70 if stabilization takes place around these present market values.
As noted by Analyst Ali, ADA breaking above the long-held support level shows that a strong move is about to happen, making it a very important time for traders.
Also Read: 5-Year Cardano Holder Loses $6 Million in Costly Stablecoin Swap Mishap


