- Cardano price fell to $0.37 after being rejected again near $0.40.
- Technicals point to a potential downtrend continuing towards $0.32.
- ADA price fell 4% in the last 24 hours.
Cardano’s ADA token has fallen and faces brutal supply barriers near $0.40. From there, relentless selling pressure risks crushing bulls’ hopes for an extended uptrend.
The token swung into the red by nearly 4% on Friday and hovered around $0.38 as near-term downside risks persist for the top coin. As you can see in the chart below, ADA traded to a daily low of $0.379.
Cardano price has hit a supply wall near $0.40.
Cardano’s price action faces a strong supply wall near the $0.40 threshold, a level that has repeatedly acted as a barrier to upward momentum recently.
The 50-day exponential moving average sits at $0.41 and acts as a bullish upper limit that signals multiple price rejections.
Meanwhile, the Relative Strength Index (RSI) on the daily chart is currently hovering below the neutral line. In technical analysis, this highlights a potential extension into oversold territory with a sloping outlook.
Another indicator, ADX, reads 19.5, indicating a bearish trend.
Negative directional dominance favors sellers.
Likewise, the MACD is showing a bearish divergence below the zero line, while the Bollinger Bands are contracting towards the lower rail. All of this makes the token facing massive downside volatility.
Therefore, the $0.40 area is another major resistance level, but also a notable oversupply area.
Cardano shows weakness amid broader headwinds.
Cryptocurrencies ended the year significantly weaker amid widespread market headwinds.
This left Bitcoin struggling to defend key levels and falling to lows of $80,000 before rebounding. However, BTC pulled back above $97,500, which appears to have limited the momentum of the top altcoin.
QCP analysts recently pointed out that while the macro environment could encourage upside, volatility could remain high. Therefore, both Bitcoin and Ethereum show risk-averse prospects unless the market sees a cleaner spot bid.
Vaulta is one of the altcoins shaken by this recession, while Cardano’s on-chain indicators, such as dormant supply activating, indicate similar selling pressure.
The recent rejection of the 50-day EMA occurred after the price declined sharply from above $0.82 on October 10, 2025. The moving average currently sits at $0.41 and has recently fallen to a low of $0.37.
Currently, ADA is back at the fragile $0.38 support, and with the funding rate turning negative, shorts could gain the upper hand.
This classic bearish signal signals that retail optimism is evaporating. However, a 26% drop in daily volume betrays weak confidence and could cause prices to probe key supply areas again.
There is a risk of a 10% collapse if ADA price fails to recover $0.40 on a surge in volume, which could bring it to a multi-month support low of $0.32.