Cardano price prediction: More downside ahead? ADA drops 5.09% as bearish trend deepens

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Cardano slides 5.09% to $0.362

Highlights

Cardano's governance process was restored through an on-chain vote, re-establishing the Constitutional Committee's powers to enable protocol upgrades and budget approvals.
The Cardano community approved a $70 million Critical Integrations Budget from the treasury to support essential infrastructure such as stablecoins, custody solutions, and cross-chain bridges.
Significant ecosystem developments include the launch of Midnight, Cardano’s privacy-focused sidechain, and its associated NIGHT token.

Governance restoration and budget approvals fuel protocol upgrades

Cardano's governance process was recently restored after an on-chain vote re-established the full powers of the Constitutional Committee, enabling key protocol upgrades and budget approvals. The Cardano community also approved a $70 million Critical Integrations Budget from its treasury to fund essential infrastructure such as stablecoins, custody solutions, and cross-chain bridges. Additional developments include the launch of Midnight, Cardano’s privacy-focused sidechain, along with its NIGHT token.

Oversold readings persist amid strong downside and no clear support

The nearest dynamic resistance for ADA is at the Ichimoku Kijun level ($0.424), with no established dynamic support above the current price. Momentum indicators remain negative: both MACD and ADX forecast continued downside, RSI sits at 33.2, CCI is at -166.4, and the Stoch RSI oscillates around oversold territory, all pointing to oversold conditions though persistent seller dominance is confirmed by the negative Bull/Bear Power reading. The Awesome Oscillator reinforces the prevailing downtrend, signaling further weakness. Today’s price action has positioned ADA near the session lows after a 5.09% intraday slide, confirming high volatility and unwavering selling pressure after the open.

Limited rebound likely as negative momentum sets trading boundaries

For the coming week, ADA is expected to trade within a typical volatility band of $0.325–$0.385, reflecting an area 10% below and 6% above the current level. The likelihood of a sustained rebound is low, with further declines favored in the absence of any significant shift in momentum. The base case sees ADA consolidating sideways between dynamic support and resistance; a bullish breakout requires a definitive move above the $0.424 Kijun level, while a daily close below $0.325 could expose ADA to more downside given ongoing negative momentum and persistent oversold signals.

Anton Kharitonov, expert at Traders Union, believes ADA’s persistent move below key moving averages and negative momentum indicators point to a structurally weak chart. He sees that recent governance upgrades and treasury allocations have failed to shift sentiment or attract buyers. The technical bias remains negative, with oversold readings doing little to weaken downward pressure. "As long as ADA stays under $0.424, I remain cautious and expect any relief rally to be short-lived."

Last time, analysts noted that Cardano (ADA) continues to trade below key moving averages, with bearish momentum confirmed by oversold RSI and negative MACD, as sellers maintain control and price action remains near session lows. Immediate resistance stands at the Ichimoku Kijun ($0.428), with short-term support around $0.377, and the asset is expected to consolidate within a narrow range, favoring further downside unless a decisive reversal occurs.

Source of Data: ADA Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.