- Cardano price dropped from about $0.40 to $0.37 after another rejection.
- The technical outlook points to a possible continuation down to $0.32.
- ADA has fallen about 4% in the last 24 hours.
Cardano’s ADA token has pulled back and faces a heavy supply wall near $0.40, where persistent selling pressure threatens to extinguish bulls’ hopes for extended upside.
The token traded roughly 4% lower on Friday, sitting around $0.38 as short-term downside risks remain for major coins. As shown in the chart below, ADA reached a daily low of $0.379.
Cardano price runs into a supply barrier near $0.40
Cardano’s recent price action encountered a notable supply wall around the $0.40 mark, a level that has repeatedly acted as a barrier to upward momentum.
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) is now below the neutral line. In technical terms, that suggests the potential for further movement into oversold territory and a more bearish outlook.
Another indicator, the Average Directional Index (ADX), reads 19.5, signaling bearish strength.
Negative directional dominance currently favors sellers.
The MACD also shows bearish divergence beneath the zero line, while Bollinger Bands are tightening toward the lower band. All of this points to elevated downside volatility for the token.
Thus, the $0.40 zone remains an important resistance level characterized by a clear supply imbalance.
Cardano shows weakness amid broader headwinds
Cryptocurrencies closed the past period mostly on the back foot amid broader market headwinds.
That pressure left Bitcoin struggling to hold key levels and dipping from highs near $97,500 toward lower ranges, which in turn constrained momentum among top altcoins.
Analysts at QCP recently noted that while the macro backdrop could eventually support bulls, volatility is likely to remain elevated. Both Bitcoin and Ethereum therefore face conditional outlooks unless the market sees cleaner spot bids.
Some altcoins, such as Vaulta, have shown weakness during this pullback, and Cardano’s on-chain metrics — including dormant supply reactivation — point to similar selling pressure.
Recent rejections at the 50-day EMA followed a significant drop from over $0.82 on October 10, 2025. The moving average now sits near $0.41 and has helped push prices down to lows around $0.37.
ADA currently rests on fragile support at $0.38, and with funding rates turning negative, shorts may gain an edge.
This classic bearish setup indicates retail optimism has faded. However, the 26% decline in daily volume suggests weak conviction, and the price could retest the key supply zone again.
Unless ADA regains $0.40 on rising volume, a further 10% drop could unfold, potentially driving the token toward multi-month support around $0.32.