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- ADA is testing a long-term support trend line held for over two years
- Momentum indicators remain decisively bearish
- The recent bounce appears corrective, not trend-changing
Cardano is once again under pressure, and the latest price bounce may already be losing steam. After months of declining momentum and repeated failures to reclaim key resistance levels, ADA is now sitting on a long-term ascending support line that has held for more than two years. Traders are watching closely, because a confirmed breakdown could mark a decisive shift toward deeper losses.
The broader structure suggests the market is running out of room for error.
ADA’s Long-Term Trend Turns Fragile
Since peaking near $1.32 in late 2024, Cardano has moved steadily lower, forming a clear pattern of lower highs. While buyers initially defended the $0.53 support zone, that level has now been lost, reinforcing the bearish trend.
More recently, ADA bounced after briefly dipping into long-term diagonal support. However, the rebound lacked strength and failed to change the broader market structure. Instead of signaling a trend reversal, the move looks more like a pause within a larger downtrend.
With price now hovering just above a support line that has been intact for roughly 900 days, the technical stakes are high.
Momentum Signals Point Lower
Zooming out, the technical picture becomes more concerning. Momentum indicators continue to lean firmly bearish. The Relative Strength Index remains below its midpoint, signaling weak demand, while the MACD is entrenched in negative territory.
From a structural standpoint, the entire advance since the 2021 lows appears corrective rather than impulsive. If that interpretation holds, the loss of long-term diagonal support could trigger a sharper sell-off, potentially dragging ADA toward levels last seen during the previous bear market.
Short-Term Bounce Looks Corrective
On lower timeframes, ADA recently completed a short-term A-B-C corrective pattern. While this provided temporary relief, it aligns with the broader bearish outlook rather than contradicting it.
The absence of strong follow-through buying suggests the bounce may already be exhausted. If price rolls over again, the next move is likely to resume the decline that began late last year.
Breakdown Risk Is Rising
Cardano’s technical structure is flashing warning signs. The loss of key horizontal support, combined with mounting pressure on a multi-year trend line, tilts the balance in favor of the bears. Unless buyers step in decisively, a breakdown could accelerate downside momentum and expose ADA to significantly lower levels in the months ahead.
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For now, Cardano remains in a vulnerable position — and the next move could define its trajectory well into 2026.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
