- Cardano (ADA) is showing strong bearish signals, with technical patterns suggesting a potential 30% drop toward $0.40.
- Market sentiment remains extremely negative, and a break below the $0.51 support could trigger further downside.
Cardano (ADA) is once again on shaky ground after confirming two bearish patterns that could send its price tumbling toward $0.40. Despite being less battered than Ethereum (ETH) and Solana (SOL) since the start of 2025, ADA has still lost nearly a third of its value — and more pain could be on the horizon.
The current macro environment is doing no favors for ADA either. The Fear and Greed Index has plunged to 15, indicating “Extreme Fear” in the market. Concerns over Trump’s proposed tariffs and the possibility of the Fed halting its expected rate cuts are pushing investors toward safe havens and away from riskier assets like cryptocurrencies.
Cardano Technical Breakdown: Support Turns into Resistance
Last week’s break of ADA’s key trend line led to a 9% plunge, landing the token near the $0.5750 zone. While ADA managed a slight bounce off that level, the rally appears to lack conviction. Momentum indicators like the RSI and MACD suggest the bears remain firmly in control. The RSI is showing a steep divergence from its signal line, and the MACD histogram has turned darker, signaling accelerating downside momentum.
Currently, Cardano is trapped between $0.5700 resistance and $0.5100 support. If the bears manage to break below $0.51, the bearish pennant pattern forming on the charts could trigger a cascade down to $0.40 — a potential 30% drop from current levels.
Fibonacci Resistance Halts Bulls
On the hourly chart, bulls attempted to reclaim control by breaking above the 61.8% Fibonacci retracement level at $0.5750 but were quickly met with heavy selling pressure. Despite a short-term bullish tilt in lower timeframes, overall sentiment remains too bearish to sustain any meaningful upside.
Adding to the pressure, ADA’s long/short ratio stands at 1.04, signaling an imbalance that could result in further downside to liquidate overly optimistic long positions. The likely scenario? A breakdown below $0.51, followed by a move toward the $0.40 level — a zone where many stop-loss orders are likely clustered.
Caution Ahead for Cardano Traders
With the charts and sentiment both pointing lower, Cardano is at risk of a deeper correction. Until stronger support is found or macro conditions improve, ADA holders should brace for potential volatility — and possibly, a significant dip.
