- Cardano faces bearish pressure but shows signs of strong accumulation and support around $0.73.
- If bulls defend this level, ADA could break out of its current range and regain upward momentum.
Cardano (ADA) has been caught in a tug-of-war between bulls and bears, trading within a tight range since December 2024. Recent price action suggests that while selling pressure hasn’t been overwhelming, the bears still hold sway as the market structure leans bearish—at least for now. But is there hope for the bulls to turn the tide?
On the daily chart, ADA seemed poised to confirm a bearish market structure after trading near its long-term lows. However, signs of resilience emerged when the price reclaimed support at $0.68, sparking a modest rally that saw ADA form a higher low at $0.74. Despite this, the token has since slipped below this level and the 20-day moving average, signaling short-term bearish momentum.
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Zooming in on the 4-hour chart, the story gets clearer: ADA has been slowly sliding from $0.84 toward $0.73 over the past several days. The tightening Bollinger Bands suggest low volatility, but the downward momentum is evident. Volume has dwindled, and the On-Balance Volume (OBV) indicator points to sellers having the upper hand recently. Bulls will likely look to the $0.71–$0.725 range as a critical buying zone, though the risk remains elevated if that support fails.
On-chain data offers a mixed but somewhat optimistic perspective. According to Santiment, medium-term holders are sitting on a healthy 26.5% profit (90-day MVRV), while long-term investors show only modest gains (8% on the 365-day MVRV). This discrepancy hints at potential profit-taking by medium-term holders, which could trigger increased selling pressure. However, the Mean Coin Age (MCA) metric has been trending upward since April, suggesting strong holding behavior and network-wide accumulation—positive signs that bulls are not giving up easily.
In summary, Cardano faces a critical juncture. The bearish market structure weighs heavily, but signs of accumulation and strong support levels hint that a bullish breakout might still be possible. For now, bulls must defend key support zones to shift momentum and challenge the bears. Traders should watch these levels closely in the coming days to gauge ADA’s next move.
