Peter Smith
Cardano (ADA) is displaying clear signs of technical vulnerability as its weekly chart begins flashing warning signals. Currently trading around $0.6427 with a slight 0.5% decline, the cryptocurrency finds itself at a critical juncture where traders are questioning whether it can defend key support levels or face further deterioration.
Bearish Momentum Builds on ADA's Weekly Chart
Recent analysis from trader Trend Rider highlights that ADA's chart is developing what he calls "red waves" — an early indication of mounting bearish pressure. Though not yet fully confirmed, this transition from neutral to red on higher timeframes usually marks the beginning of a momentum shift, suggesting sellers are steadily taking control.
The chart reveals ADA struggling beneath the upper moving average band, forming consecutive lower highs since mid-summer. The trend zone has evolved from green to red tones, confirming that market conditions aren't favorable for any bullish comeback.
Key Technical Levels
Cardano's immediate support sits around $0.57, coinciding with the lower boundary of the shaded moving average channel. If ADA closes below this level on a weekly basis, it could face additional downside toward $0.49 — a historically significant demand zone from late 2023. On the flip side, resistance hovers near $0.75, where price previously struggled to regain bullish momentum. The substantial trading range between $0.57 and $0.75 indicates an ongoing distribution phase, with neither bulls nor bears commanding clear control until a breakout happens.
Key levels to monitor:
- Support: $0.57 (critical near-term floor)
- Secondary support: $0.49 (major demand zone)
- Resistance: $0.75 (failed breakout area)
Market Context
Cardano's recent weakness reflects a wider altcoin pullback as capital flows into Bitcoin and larger-cap assets during this risk-off environment. Reduced liquidity and slower capital movement into DeFi protocols have intensified selling pressure across the ADA ecosystem. While network growth and staking participation continue expanding, price action remains heavily influenced by macroeconomic uncertainty — especially the dollar's strength and investor caution ahead of upcoming central bank decisions.
Peter Smith
