The price of Cardano’s ADA token has dropped to $0.37 after struggling against a formidable supply barrier at approximately $0.40. Technical indicators suggest a potential decline to $0.32, as the price continues to face downward pressure, showing a 4% decrease in the last 24 hours.
Cardano Faces Supply Wall Near $0.40
Cardano’s price trajectory has recently encountered significant resistance around the $0.40 mark, a threshold that has repeatedly stymied upward momentum. As of Friday, the asset traded down nearly 4%, hovering around $0.38, with a daily low of $0.379.
The 50-day exponential moving average stands at $0.41, functioning as a strong ceiling that has triggered numerous price rejections. Moreover, the Relative Strength Index (RSI) currently remains below neutral levels, indicating potential oversold territory.
Additionally, the Average Directional Index (ADX) reading of 19.5 signals bearish strength, favoring sellers in the market. The Moving Average Convergence Divergence (MACD) continues to show bearish divergence below the zero line, and the Bollinger Bands are contracting toward the lower rail, suggesting increased downside volatility.
Wider Market Challenges Impact Cardano’s Performance
The broader cryptocurrency market concluded the previous year largely on a downtrend, influenced by adverse macroeconomic conditions. Bitcoin struggled to maintain critical support levels, plummeting to lows of $80,000 before exhibiting a slight rebound. However, Bitcoin has subsequently retraction from the $97,500 mark, capping the growth of prominent altcoins.
Recent analysis from QCP emphasized that while macroeconomic factors may support bullish sentiments, volatility remains elevated. Both Bitcoin and Ethereum appear to exhibit risk-averse sentiment unless clearer bullish signals emerge.
In this context, Cardano has shown signs of weakness, with on-chain indicators such as dormant supply activation reflecting similar sell pressure. Recent rejections by the 50-day moving average followed a significant drop from above $0.82 on October 10, 2025, pushing the price down to the crucial support level of $0.38. Without a rebound to the $0.40 mark accompanied by increased volume, a potential break below could test support levels around $0.32.
