ADA remains in a downtrend after a 10.7% weekly decline

Traders Union
All News
Crypto
Cardano falls 10.71% over the week

Highlights

Cardano sustains a strong bearish trend, trading well below key moving averages with sellers firmly in control.
Oversold technical conditions persist, as momentum, trend, and oscillator signals unanimously point to further downside.
ADA likely consolidates in the $0.143–$0.171 range this week, with downside risk outweighing a recovery or reversal.

Network upgrades offset by security breach as ADA sentiment sours this week

Cardano recently launched the Leios Musashi Dojo public testnet, a major technical initiative aimed at raising blockchain throughput, and executed an associated hard fork as part of a long-term network upgrade phase. The network also transitioned to fully decentralized on-chain governance via the Plomin hard fork and achieved a Nakamoto coefficient score of 23, ranking fourth in blockchain decentralization. Additionally, a security vulnerability in the SecondFi wallet led to unauthorized withdrawals of approximately 16 million ADA, with further losses possible and affected users encouraged to adopt alternative wallet solutions.

Bearish momentum confirmed as technicals reinforce downside pressure over the week

Weekly technicals confirm a strong bearish setup for ADA, as the price remains entrenched below all major moving averages on the W1 chart, with the MA-20 acting as the closest resistance. Momentum indicators reinforce the negative trend: the RSI is deeply oversold at 28.42, Stochastic RSI is at 7.68, and the CCI reads -201.4, yet no signs of a reversal are present as selling pressure dominates. The MACD and ADX both indicate downward continuation, while the Awesome Oscillator is also negative, and ADA is trading at the lowest edge of the weekly range ($0.151) with volatility at 13.42%.

Limited rebound risk as oversold signals fail to reverse bearish outlook next week

For the next 7 days, ADA is expected to trade between $0.143 and $0.171, with the probability of a price rebound remaining very low (below 20%) as oversold readings have yet to result in meaningful buying. Stabilization within this corridor may occur due to stretched technical conditions, but the overall risk of further declines persists. A push above $0.171 could trigger temporary short-covering towards the MA-20, while a definitive drop below $0.143 would likely lead to a retest of recent lows as strong bearish momentum endures.

Jainam Mehta, market strategist, sees Cardano's weekly close at $0.151 as a clear reflection of sustained bearish momentum, with price action firmly below all major moving averages. He notes that although recent network upgrades and governance milestones are promising for the platform, heavy oversold signals have not yet prompted a meaningful shift in trend. Mehta highlights ongoing security concerns and extreme technical readings, favoring further consolidation or potential downside within the $0.143 to $0.171 corridor this week. "Unless ADA reclaims the MA-20 near $0.237 or buyers step in decisively, I see little incentive to fight the current downtrend — the tactical bias remains defensive with a strong focus on risk management."

Previously it was reported that Cardano advanced its network scalability with the launch of the Leios Musashi Dojo public testnet, positioning itself for long-term growth despite ongoing market pressures. The current persistent downtrend and technical weakness suggest that, while Cardano's structural upgrades may support future resilience, traders should watch for further downside risk if ADA fails to hold above the $0.143 support in the coming week.

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

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.