Cardano edges higher as price tests resistance at $0.165: weekly outlook

Traders Union
All News
Crypto
Cardano up 0.80% this week

Highlights

Cardano (ADA) remains in a pronounced downtrend, trading below key moving averages with sellers dominating the medium- and long-term outlook.
Oscillators such as RSI and CCI indicate extreme oversold conditions, but momentum indicators suggest little short-term buying strength.
Price is likely to fluctuate between $0.135 support and $0.165 resistance over the next week, with further declines favored unless momentum shifts.

Network exploit and developer resilience drive contrasting weekly sentiment

The Cardano network was affected by the SecondFi exploit, which led to approximately $2.4 million in ADA being stolen from 374 addresses, with recovery efforts underway and EMURGO announcing a plan to return assets within two weeks. Despite the incident, developer activity continued with the testnet launch of the Ouroboros Leios protocol and ongoing governance initiatives. Large holders increased their ADA positions, while daily transaction volumes fell to a 45-day low. USDCx reserves on the Cardano network also grew, making it the largest stablecoin by liquidity on the platform.

Oversold signals persist amid firm bearish momentum over the week

On the weekly (W1) chart, all key moving averages — MA-20 at $0.236, MA-50 at $0.460, and MA-200 at $0.482 — remain far above the current price, confirming persistent downward pressure. Weekly MACD and ADX both indicate strong bearish momentum, while RSI, Stochastic RSI, and CCI reflect deeply oversold conditions and hint at short-term stabilization. Bull/Bear Power stays negative, and the Awesome Oscillator also tilts bearish, despite oscillators signaling that the asset is oversold. Key support lies at $0.135 and resistance at $0.165 for the week ahead.

Sideways or lower price action seen as rebound odds stay weak

Over the next seven days, ADA is likely to fluctuate between support at $0.135 and resistance at $0.165, tracking recent weekly volatility. Persistent bearish momentum and a lack of buy signals from weekly indicators suggest only a minor chance — less than 20% — of a sustained rebound, making sideways action or further downside more probable. A break below $0.135 would confirm the prevailing negative trend, while any bullish move above $0.165 remains unlikely without a material shift in sentiment.

Parshwa Turakhiya, analyst, sees Cardano (ADA) finishing the week at the upper edge of its range, though still well below all major moving averages and weighed down by persistent bearish sentiment. He notes that despite the SecondFi exploit disrupting network confidence, developer activity remained steady and large holders accumulated, even as overall transaction volumes fell. Technical indicators highlight strong selling pressure, but deeply oversold conditions could prompt some stabilization above support at $0.135. Turakhiya believes that, barring a distinct change in sentiment or momentum, ADA is likely to continue sideways or drift lower between $0.135 and $0.165 in the coming week. "With no solid buy signals and sentiment still fragile, I remain cautious and see range-bound action dominating until bulls show clear intent."

Earlier, analysts noted that Cardano faces market skepticism despite ambitious network upgrades, with recovery dependent on translating technological advances into real adoption. The ongoing bearish momentum and tepid network activity highlighted in this update reinforce that a decisive shift in sentiment or utility uptake will be crucial to escape the prevailing downtrend.

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.