Cardano (ADA) has slipped to the lower boundary of a year-long parallel channel, deepening its multi-month decline. After months of holding firm above the key $0.60 support level, ADA finally broke below it this week, flipping the zone into resistance and signaling renewed bearish pressure. Unless the price can reclaim $0.60 and establish it as support again, the path of least resistance points lower. Here’s what the charts suggest about ADA’s chances of staging a bullish reversal.
Why is Cardano going down?
Cardano has been trending lower ever since its December 2024 cycle peak, when ADA briefly touched $1.33. Since then, the price has moved within a descending parallel channel, typically a corrective structure that eventually resolves with an upside breakout. This time, that breakout never came.
The October drop sent ADA down to $0.27, where it found temporary support along the channel’s lower trend line. From there, the token managed a sharp rebound and pushed back above the key $0.60 level, briefly restoring a bullish structure. But that recovery was short-lived. Within two weeks, ADA slipped back below $0.60, turning the area into confirmed resistance. The token now trades comfortably beneath it, reinforcing the broader bearish trend. Unless Cardano can reclaim $0.60 and convert it into support, the long-term outlook remains tilted to the downside.
Momentum indicators also suggest that the overall trend is bearish. The Relative Strength Index (RSI) has crashed, and the Moving Average Convergence/Divergence (MACD) is in negative territory.
Cardano’s Short-Term Movement
Cardano’s daily chart is telling the same story as the weekly one: the path of least resistance still points downward. ADA appears to have completed a corrective A-B-C bounce that began in April 2025. Once that recovery phase ended, the token rolled over into a clear five-wave decline, with price action now sitting in what looks to be wave four of that move. Adding to the bearish structure, ADA has fallen decisively below the $0.72 horizontal zone. This level previously acted as support and is now likely to cap any short-term rebound.
If today’s bounce extends further, this zone is expected to serve as the range high before sellers step in again. The technical indicators back up the caution. Neither the RSI nor the MACD has formed a bullish divergence, suggesting that momentum does not support a sustained reversal. Taken together, the daily outlook remains firmly bearish. Any brief recoveries are likely to be corrective rather than the start of a new uptrend.
Bearish Trend Continues ADA broke down from its long-term horizontal support, and momentum indicators have turned bearish. Unless ADA reclaims the $0.60 support area, all signs point to a sustained decline that will lead to new lows.