Cardano’s ADA token is currently experiencing a downturn, trading around $0.38, as it encounters significant selling pressure close to the $0.40 mark. Analysts warn that further declines could see the price test support levels around $0.32.
Cardano Hits Supply Wall Near $0.40
Recently, Cardano’s price has faced a formidable supply wall around the crucial $0.40 threshold, which has repeatedly stymied upward momentum. The 50-day exponential moving average is positioned at $0.41, serving as a stubborn ceiling that has been a catalyst for numerous price rejections.
The relative strength index (RSI) on the daily chart remains below neutral territory, indicating the potential for further declines into oversold conditions. Additionally, the average directional index (ADX) reads 19.5, pointing to bearish momentum, favoring sellers.
The moving average convergence divergence (MACD) similarly exhibits bearish divergence beneath the zero line, while the Bollinger Bands are contracting towards the lower rail, suggesting heightened downward volatility. The $0.40 area thus emerges as another key resistance level, with a notable abundance of supply on the market.
Cardano Faces Broader Headwinds
Overall, cryptocurrencies have closed the previous year largely on a bearish note amid broad market headwinds. Bitcoin has struggled to maintain key levels, experiencing a drop to approximately $80,000 before staging a rebound. However, after peaking beyond $97,500, BTC has retreated, seemingly capping the momentum of popular altcoins.
Analysts from QCP recently highlighted that while the macroeconomic environment may support bullish sentiment, volatility is likely to remain elevated. Both Bitcoin and Ethereum exhibit risk-averse outlooks unless the market observes cleaner interim offers.
Cardano has been among the altcoins that have deteriorated in this slowdown, with on-chain indicators signaling similar selling pressure. The recent rejections from the 50-day moving average follow a significant price drop from over $0.82 on October 10, 2025, with the moving average now at $0.41, prompting a decline to as low as $0.37.
Currently, ADA has returned to the fragile support at $0.38, and with negative funding rate trends, short positions may hold an advantage. This classic bearish signal suggests that retailer optimism is waning. Nevertheless, a 26% drop in daily volume indicates weakened conviction, and the price could again test the critical supply zone.
Should ADA fail to reclaim the $0.40 level with increased volume, a breakdown of 10% may be on the horizon, potentially leading to support lows around $0.32.
John is a seasoned journalist at The Bothside News, specializing in balanced reporting across news, sports, business, and lifestyle. He believes in presenting multiple perspectives to help readers form informed opinions. His work embodies the publication’s philosophy that truth emerges from examining all sides of every story.
