Cardano price continues to weaken as the bearish market structure remains intact, with failed retests of resistance and weak demand increasing the risk of a deeper correction.
Summary
- Bearish market structure with consecutive lower highs intact.
- Losing the control point moves the price to a lower value.
- Weak demand increases downside risk towards $0.27.
The price action of Cardano (ADA) price continues to reflect persistent bearish pressure, with the market structure firmly tilted to the downside. Despite brief attempts at consolidation, each rally was capped by lower highs, reinforcing the broader downtrend.
Recent price behavior suggests that sellers remain in control, and without a significant change in demand, Cardano risks extending its decline towards lower support levels in the long term.
Cardano Price key technical points
- Lower highs continue to define Cardano’s downtrend
- Loss of checkpoint shifts focus to a lower value
- The weak reaction to the low level of the value zone increases the downside risk towards $0.27.
From a market structure perspective, Cardano remains in a clear downtrend, characterized by consecutive lower highs and lower lows. Every attempt to reclaim higher levels has failed, reinforcing the idea that bullish moves are corrective rather than impulsive. This behavior is typical of markets where sellers maintain control and buyers lack conviction.
One of the most notable developments was Cardano’s rejection of the long-term resistance at $0.48. After falling below this level, price attempted a back-test, a common technical behavior that often determines whether a breakdown will persist. In this case, the back-test failed and price was rejected, confirming $0.48 as a strong supply zone and validating the continuation of the downtrend.
Following this rejection, Cardano briefly consolidated around the Point of Control (POC). The POC represents the area of highest trading volume within the recent range and often acts as a pivot between bull and bear control. However, the price has since lost acceptance above this level, signaling a transition from equilibrium to a lower value.
With POC now acting as resistance, price has turned towards the low level of the value zone (VAL) of the broader trading range. This area generally attracts responsive purchases, but the current response has been particularly weak. The lack of a strong bullish follow-through suggests that demand is limited, increasing the likelihood that support will fail rather than hold.
Weak reactions at the low level of the value zone are often a warning sign. In stronger markets, prices typically produce impulsive rebounds in this region, supported by increased volume. In the case of Cardano, the lack of such behavior implies that buyers are unwilling or unable to absorb the selling pressure, leaving the door open for further declines.
From a price action perspective, candles continue to reflect seller dominance, with upside attempts quickly sold out and downside momentum remaining intact. As long as Cardano continues to form highs below old support levels, the bearish structure remains valid.
Liquidity dynamics also favor a continuation of the decline. Below the current price, structural support is relatively limited until the low near $0.27, which represents the lower limit of the broader trading range. Markets often gravitate toward such levels to clear out remaining liquidity, particularly when intermediate support zones fail to attract strong demand.
It is important to note that a move towards $0.27 would not be unusual in the context of Cardano’s broader structure. Rather, it would represent a continuation of the prevailing trend, allowing the market to test stronger demand before a possible rebalancing occurs.
What to expect from the next price action
As long as Cardano remains below the checkpoint and continues to print lower highs, downside risk remains high. Failure to produce a strong and significant rebound from the value zone low increases the likelihood of a rotation to the $0.27 low.
Any bullish invalidation would force Cardano to reclaim lost resistance levels and establish acceptance above the POC, a signal that has yet to appear. Until then, the path of least resistance remains lower, with further decline likely in the near term.
