Cardano Price Analysis: Bearish Market Structure Intact, Increasing Downside Risk
Cardano price continues to weaken as the bearish market structure remains intact, with failed tests of resistance and weak demand increasing the risk of a deeper correction. The Cardano price (ADA) price action continues to reflect ongoing bearish pressure, with the market structure trending sharply downwards. Despite brief attempts at consolidation, each rally was capped by lower highs, reinforcing the overall bearish trend.
Recent price action suggests that sellers remain in control and without a significant shift in demand, Cardano risks extending its decline towards lower support levels on the high time frame. From a market structure perspective, Cardano continues to be in a clear downtrend, characterized by consecutive lower highs and lower lows. Every attempt to reclaim higher levels has failed, reinforcing the idea that upside moves are corrective rather than impulsive.
Key Technical Points
Lower highs continue to dictate Cardano’s downtrend, with losing the control point shifting the focus to a lower value. A weak reaction at the Value Area Low increases downside risk towards $0.27. The ADAUSDT (1D) chart, sourced from TradingView, illustrates the bearish market structure and failed attempts at consolidation.
One of the most notable developments was Cardano’s rejection of the wedding resistance at $0.48. After breaking below this level, the price attempted a backtest, a common technical behavior that often determines whether a dip will hold. In this case, the backtest failed and the price was rejected, confirming the strong supply zone at $0.48 and confirming the continuation of the downtrend.
Market Structure and Price Action
Following this rejection, Cardano briefly consolidated around the Point of Control (POC). The POC represents the area of highest trading volume within the current range and often acts as a pivot point between bullish and bearish control. However, the price above this level has since lost acceptance, signaling a transition from equilibrium to a lower value. With the POC now acting as resistance, the price has turned towards the Value Area Low (VAL) of the broader trading range.
Weak reactions at the value area low are often a warning sign. In stronger markets, price typically leads to impulsive bounces in that region, supported by increasing volume. In the case of Cardano, the lack of such behavior means buyers are either unwilling or unable to absorb selling pressure, leaving the door open for further downside. From a price action perspective, candles continue to reflect seller dominance, with upside attempts quickly sold off and bearish momentum remaining intact.
Liquidity dynamics also favor a continuation of the decline. Below the current price, there is relatively limited structural support until the swing low near $0.27, which represents the lower boundary of the larger trading range. Markets often gravitate toward such levels to release residual liquidity, especially when intermediate support zones do not attract strong demand.
Upcoming Price Development
As long as Cardano remains below the control point and continues to post lower highs, the downside risk remains elevated. Failure to engineer a strong, large-volume rebound from the bottom of the value range increases the likelihood of a rotation toward the $0.27 swing low. Any bullish debasement would require Cardano to regain lost resistance levels and establish acceptance above the POC, a signal that has not yet emerged.
For more information on Cardano’s price analysis, visit https://crypto.news/cardano-price-remains-bearish-as-market-structure-signals-further-downside/
