- Cardano’s price fell to $0.37 after another rejection near $0.40.
- The technical outlook suggests a possible continued decline toward $0.32.
- ADA price dropped 4% in the past 24 hours.
Cardano’s ADA token is retreating and facing a heavy supply wall near $0.40, where persistent selling pressure threatens to derail bullish hopes for an extended rally.
On Friday, ADA traded nearly 4% lower, hovering around $0.38 as short-term downside risks remain for the top altcoin. As shown in the chart below, ADA touched a daily low of $0.379.
Cardano price hits supply wall near $0.40
Cardano’s price action recently ran into a substantial supply wall around the $0.40 mark, a level that has repeatedly acted as resistance for upside attempts.
The 50-day exponential moving average sits at $0.41 and has served as a stubborn ceiling, contributing to multiple rejections.
On the daily chart, the Relative Strength Index (RSI) remains below the neutral level, a technical sign that further movement into oversold territory is possible.
Another indicator, the ADX, reads 19.5, pointing to bearish momentum.
Negative directional dominance favors sellers.
The MACD also shows bearish divergence below the zero line, while the Bollinger Bands are contracting toward the lower band. Together, these indicators imply heightened downside volatility for the token.
Thus, the $0.40 zone looks less like a simple resistance level and more like a concentrated supply area that sellers defend aggressively.
Cardano shows weakness amid broader market headwinds
Cryptocurrencies closed the most recent period mostly lower amid wider market strains.
Bitcoin struggled to hold key levels, falling to lower price points before bouncing, and its retreat from above $97,500 has curbed momentum for leading altcoins.
QCP analysts recently noted that while macro conditions could eventually support bulls, volatility is likely to remain elevated. Both Bitcoin and Ethereum present a risk-off profile unless spot liquidity improves.
Some altcoins, like Vaulta, have faltered during this downturn, and Cardano’s on-chain metrics—such as the reactivation of dormant supply—signal similar selling pressure.
Recent rejections at the 50-day EMA follow a sharp decline from above $0.82 on October 10, 2025. The moving average now sits at $0.41 and has helped trigger a slide to $0.37 lows.
ADA has returned to fragile support around $0.38, and with funding rates in negative territory, short positions could dominate.
This classic bearish setup suggests retail optimism is fading. However, a 26% drop in daily volume points to weakening conviction, and the price could probe the key supply zone again.
If ADA fails to reclaim $0.40 on rising volume, it risks a roughly 10% decline toward multi-month support near $0.32.