Cardano price continues to slide after losing its most reliable floor since early 2024. ADA price spent several months above this support level and made several solid rebounds whenever it revisited the zone. This floor is a distinct shift in the previous cycles where the buyers controlled this area.
Notably, the collapse is also consistent with the larger weakness that began following multiple unsuccessful efforts to recapture higher areas. The current structure now demands a deeper look into ADA’s reaction to this major shift.
Cardano Price Breaks Historical Pattern After Three Major Rebounds
At the time of press, the price of Cardano declined to $0.472 after sliding below the support zone that held firm across three major cycles. Analyst Ali points to this level as the foundation of three significant ADA rebounds across 2024.
Notably, the initial touch occurred in early April, and ADA price increased nearly 60 percent in a consistent recovery. Another retest in late June gave a more pronounced 80% rally after which the trend subsided.
Additionally, in late July, a third touch was created and another rebound was created which confirmed the level as a reliable floor. The analyst observes that ADA honored this zone during all the cycles and never crossed it below.
However, the present decline disrupts the whole trend and exposes fresh downside room to $0.40. This major shift places Cardano price in a new phase and separates this decline from previous reactions on the chart.
Bearish Pennant and $0.50 Rejection Keep ADA Price Under Pressure
Cardano price now trades below a confirmed bearish pennant flag on the four-hour chart. At the time of press, the price of Cardano dropped to $0.472 after rejecting the $0.50 area that formed the earlier projected target.
The structure shows tight consolidation, repeated lower highs, and a sharp break under the lower boundary. ADA price remains below the broken trendline with clean downside follow-through and no strong buyer defense.
The current leg also aligns with a measured move that points toward the $0.40 zone. Price action still forms a direct continuation wave without any flattening that could show exhaustion. This keeps the decline active and leaves Cardano price exposed to deeper losses unless buyers reclaim the broken $0.50 mark soon.
DMI Indicator Confirm Strong Selling Control
The DMI indicator reinforces the bearish structure that now guides Cardano price direction. The tool quantifies the intensity of buying strength, selling strength and the intensity of the overall trend using three directional lines.
Recent readings indicate that +DI is 9.85 that is far below -DI of 33.15 indicating a definite seller dominance. The ADX is at 47.38 and has a strong conviction trend.
ADA price hardly ever cleans up reversing at these high levels in ADX. This puts solid pressure on any upward movement and suppresses any initial rebound. The combined outlook also slows ADA long-term price performance because sellers keep control across multiple timeframes.
To, conclude, Cardano price now trades below its strongest multi-month floor, and the chart still shows steady pressure from sellers. The ADA price has a definite bearish formation in both periods, and this leaves $0.40 on the table as the next point of reaction. Buyers need to recover the $0.50 to halt this slide, or the existing downward trend can go even further before any recovery effort.
Source: https://coingape.com/markets/whats-next-for-cardano-price-after-breaking-below-key-support-level/