Cardano (ADA) price declines but traders still eye recovery toward $0.96

Cardano (ADA) continues to decline as bearish sentiment prevails in the market. Over the last 24 hours, the market value of ADA declined by 3.67%, and since the week also started on a negative note, the weekly performance of ADA stands at a loss of 2.39%.

Currently, ADA is trading at $0.3554, and its trading volume over the last 24 hours is approximately $621.86 million, showing a decrease of 1.91%. Its market capitalization is now at $12.77 billion, after showing a decrease of 3.65%.

Source: CoinMarketCap

Also Read: Cardano (ADA) Tests Critical Support: Is a Rally Toward $1.14 Possible?

Buyers Defend Crucial Support Amid Weakness

On the daily timeframe, ADA is trading near the lower boundary of a well-defined descending channel, a zone where the price has historically reacted positively. The current area aligns with strong horizontal support and a high-volume node, suggesting accumulation rather than panic selling. Multiple long wicks indicate that buyers are absorbing selling pressure.

According to crypto analyst @JohncyCrypto, there is strong buying interest in the support zone at $0.34-$0.36, and this zone is holding up well. This is a strong indication of a reversal to a higher position within the channel, even though there is still a prevailing bearish trend. The daily close above the support zone will keep the upmove technically valid.

Source: @JohncyCrypto

However, as momentum builds, it’s more appropriate to view positive targets as resistance levels rather than fixed price movements. The critical resistance levels to focus on are $0.39, $0.47, $0.54, $0.61, $0.69, $0.76, and $0.96. The top channel and the $0.96 area continue to be solid resistance, where traders would take profits.

Short-Term Structure Weakens Yet Stabilizes

According to technical analysis by @olaxbt, ADA is in a short-term downturn with lower highs due to a failure at around $0.38. It is falling, but remains above the Volume-Weighted Average Price (VWAP), showing that the sell-offs are being managed. The volume is not increasing, so there is less strength in the sell-offs.

Source: @olaxbt

CVD is currently trading lower than the simpler moving average with a period of 14, indicating there is some selling pressure. However, the fact that the angle of the line is flattening out indicates that the bearish momentum is waning. At the same time, the MFI is approaching the neutral area, indicating there is some bullish divergence.

Also Read: Cardano (ADA) Holding Critical Zone: Is a Breakout to $0.61 Possible?