Cardano (ADA) is experiencing significant downward pressure, trading at $0.6981 with a 2.391% decline over the past 24 hours. The cryptocurrency finds itself at a pivotal moment as it approaches the apex of a multi-year symmetrical triangle formation on weekly charts. This technical pattern is nearing resolution, and the direction of the eventual breakout will likely shape ADA’s price trajectory through the remainder of Q3. The token has struggled to overcome descending resistance levels established since its 2021 peak, creating mounting tension as traders await a decisive move.
Technical indicators paint a predominantly bearish picture across multiple timeframes. On the 4-hour chart, ADA has broken below the crucial Supertrend level at $0.78 and is now trading beneath key exponential moving averages (20, 50, and 100 EMAs). The Directional Movement Index shows strong bearish momentum with -DI at 31.8 significantly outpacing +DI at 9.6. Additionally, RSI readings on both 1-hour and 4-hour charts remain deeply oversold below 31, while MACD displays expanding negative momentum. Bollinger Bands have widened dramatically to the downside, with ADA falling below the lower band, signaling heightened volatility without meaningful support recovery.
The current market structure reveals a Change of Character (CHoCH) following ADA’s rejection from the $0.87 July peak, creating an imbalance zone between $0.66 and $0.69. Smart Money Concepts suggest this bearish imbalance may need to be filled before any substantial recovery can begin. Critical support lies at $0.68, representing the lower boundary of the triangle formation. A breakdown below this level could expose ADA to further declines toward $0.66 and potentially $0.60. Network outflows of $6.34 million on August 1st underscore the selling pressure currently facing the token.
Despite short-term bearish sentiment, Cardano’s fundamental development continues progressing steadily. The network maintains its focus on academic research-driven blockchain infrastructure, with recent achievements including strategic partnerships and security audits. Notable progress includes PartnerChain integrations through projects like Milkomeda, enhancing cross-chain compatibility and developer engagement. The Remittix project’s successful CertiK security audit and upcoming wallet rollout demonstrate real-world application deployment on Cardano’s network. For ADA to reverse its current trajectory, it must reclaim the $0.78 resistance level and flip the Supertrend indicator bullish, potentially opening paths toward $0.84-$1.20 depending on broader market conditions.
