Cardano continues to face sustained selling pressure on the four-hour ADA/USD chart, according to recent market data from Kraken. The broader structure shows a persistent downtrend, marked by lower highs and lower lows.
Cardano continues to face sustained selling pressure on the four-hour ADA/USD chart, according to recent market data from Kraken. The broader structure shows a persistent downtrend, marked by lower highs and lower lows.
Besides weak price action, technical indicators and flow data reinforce a cautious outlook. Traders appear reluctant to build aggressive positions, while sellers continue to defend key resistance zones. Consequently, ADA remains vulnerable to further downside unless buyers regain critical levels and improve momentum conditions.
Price action shows ADA trading below its Supertrend resistance, which continues to cap rebound attempts. Significantly, the breakdown below the 0.382 Fibonacci level near $0.333 accelerated selling pressure. That move shifted market focus toward deeper retracement levels.
Price now hovers near the $0.283–$0.280 zone, which acts as short-term demand. However, structure remains fragile, and buyers show limited follow-through.
Additionally, the $0.268 level stands out as a major technical marker. This area aligns with the full retracement of the prior upswing. A decisive break below this level would likely confirm trend continuation. Hence, analysts point to the $0.250–$0.240 range as the next downside objective if selling persists.
On the upside, several resistance layers restrict bullish recovery. The $0.308–$0.310 region represents the first rebound barrier. This zone aligns with the 0.236 Fibonacci retracement. Moreover, the former support at $0.333 now acts as a firm ceiling. Sellers continue to defend this level aggressively.
Beyond that, the $0.353–$0.372 area forms a broader supply zone. This region overlaps with the 0.5 to 0.618 Fibonacci retracements. Consequently, any rally into this range may attract renewed selling interest, especially without stronger volume support.
Momentum indicators further support the defensive outlook. CMF readings remain negative, signaling ongoing capital outflows. However, brief bounces fail to flip the indicator positive. This behavior suggests corrective rallies rather than trend reversals.
Market participation data supports the cautious outlook. Open interest trends show a steady reduction, signaling reduced leverage and declining trader conviction.
Previously, rising open interest accompanied price advances, but recent behavior differs. Consequently, traders appear to reduce risk rather than position for aggressive upside.
Spot flow data also highlights persistent distribution. Outflows continue to outweigh inflows, even during brief rebounds.
Moreover, buyers fail to sustain accumulation phases, which limits recovery strength. Overall, flow dynamics suggest cautious sentiment and ongoing supply pressure, reinforcing the broader bearish structure.
Key levels remain clearly defined as ADA trades within a firmly established downtrend on the 4-hour chart.
Upside levels:
Downside levels:
Resistance ceiling:
Technically, ADA appears to be compressing within a descending structure marked by lower highs and weak follow-through on bounces. Momentum indicators continue to reflect distribution rather than accumulation, while declining open interest suggests ongoing deleveraging. This combination often precedes either extended consolidation or another volatility expansion leg lower.
Cardano’s short-term outlook depends on whether buyers can defend the $0.268 support zone and slow the current trend. A successful hold could allow price to challenge the $0.308–$0.310 resistance cluster. However, without a shift in capital flows and momentum confirmation, upside attempts may struggle to gain traction.
If sellers force a clean break below $0.268, ADA risks accelerating toward the mid-$0.20s, reinforcing the broader bearish structure. For now, Cardano sits at a pivotal inflection zone. Market structure favors caution, and confirmation, not anticipation, will determine the next directional move.
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