Cardano price has slipped into a key support zone after a sharp decline, with participants closely watching for signs of stability or another downside break.
Despite heavy selling over the past few weeks, Cardano price is starting to stabilize around a familiar support region, hinting that the downside may be slowing. Participants are now watching closely to see whether this zone can spark a reaction, especially as momentum indicators show signs of cooling and exhaustion.
Cardano Price Still Showing Signs of Weakness
ADA continues to struggle after a sharp multi-week decline, with price now sitting deep inside oversold territory. The recent chart shared by Trend Rider highlights that ADA has not yet shown the key strength signal seen in previous reversals. Until that reappears, the market remains vulnerable to further downside pressure. This is why the analyst stresses patience; the structure hasn’t turned yet, and rushing leveraged longs here could expose traders to more volatility.
ADA slips deeper into oversold territory, testing key levels where past recoveries began but showing no confirmed strength yet. Source: Trend Rider via X
Despite the heavy selloff, ADA is approaching levels where the last significant strength index flipped, but there’s still no confirmation. The price structure on the daily timeframe remains weak, and unless ADA can hold strength around the current zone and form a proper reaction, another leg lower cannot be ruled out.
Bear Flag Breakdown Extends the Downtrend
The weekly chart highlighted by Beason shows Cardano price breaking down from a three-year bear flag, a structure that had been holding since 2021. This breakdown is significant because the lower boundary of the channel acted as support multiple times, losing it signals that buyers were overwhelmed. Price is now trading under the EMAs, and momentum continues to lean bearish while the structure searches for a new base.
Cardano breaks below a three-year bear flag, slipping under key EMAs as weekly support levels at $0.34 and $0.29–$0.30 come back into focus. Source: Beason via X
Below current levels, the weekly support zones sit around $0.34 and $0.29 to $0.30, both visible on the chart. Combined with weakening RSI on higher timeframes, ADA’s broader trend still appears pressured. Buyers need to reclaim at least the mid-range, near $0.47 to $0.50, to shift sentiment meaningfully.
Divergence Could Offer a Relief Bounce
Jesse Peralta gives ADA holders a slightly contrasting angle. Despite the breakdown, the 12H-timeframe is printing a bullish divergence on both the RSI and momentum oscillators. This doesn’t invalidate the larger downtrend, but it does suggest short-term exhaustion in the selling pressure. Divergences like these previously led ADA into strong bounce phases.
A fresh 12H bullish divergence appears on ADA’s chart. Source: Jesse Peralta via X
If this divergence plays out, ADA could revisit $0.50 to $0.60. However, it requires follow-through as divergence alone is not confirmation. A clean higher-low formation would strengthen the recovery case.
Contrary View: Capitulation Wick May Mark the Low
Altcoin Piooners offered a more optimistic interpretation, suggesting that Cardano price may have just printed the final panic wick. Their chart shows ADA tagging the multi-year uptrend line for the fourth time while also touching the apex of a two-year symmetrical triangle. From a structural perspective, this is typically where long consolidations find their resolution.
ADA’s capitulation wick taps a key multi-year trendline, hinting at a potential cycle bottom forming. Source: Altcoin Piooners via X
The capitulation wick dipping into the lower boundary could represent the final flush of weak hands before stabilization. Even though this is a more bullish stance, the pattern does align with how ADA behaved during previous large cycle bottoms, a sharp panic wick followed by gradual recovery attempts.
Final Thoughts: Bullish or Bearish Outlook?
ADA is currently sitting at a crossroads. The broader trend remains under pressure after a multi-month breakdown and a failed defense of the bear flag. Trend Rider’s caution is justified as the strength signal that marked previous market bottoms has still not reappeared.
However, the market isn’t one-sided. Jesse Peralta’s divergence adds a legitimate short-term bullish argument, while the capitulation wick pointed out by Altcoin Piooners gives ADA a possible structural bottoming case. This mix of signals suggests that volatility will remain high until the market decides on a direction.
For now, Cardano needs stability, a clear higher low, and a reclaim of key levels before confidence returns. Traders should stay flexible, ADA is close to important inflection zones where both recovery and continuation remain possible.
