- Cardano’s price fell to $0.37 after another rejection near $0.40.
- The technical outlook points to a potential drop toward $0.32.
- ADA has fallen about 4% in the past 24 hours.
Cardano’s ADA token has slipped and continues to face a heavy sell wall around $0.40, where persistent selling pressure threatens bulls’ hopes for a sustained advance.
The token traded nearly 4% lower on Friday, hovering around $0.38, as short-term downside risks for major coins remain present. As the chart below shows, ADA moved to a daily low of $0.379.
Cardano price hits a supply wall around $0.40
Cardano’s recent price action encountered a substantial supply wall at the $0.40 threshold, a level that has repeatedly acted as a barrier to upward momentum.
The 50-day exponential moving average sits at $0.41 and continues to act as a stubborn ceiling that has triggered multiple price rejections.
Meanwhile, the Relative Strength Index (RSI) on the daily chart remains below the neutral midpoint, which in technical analysis signals the potential for further moves into oversold territory.
Another indicator, the ADX, reads 19.5, indicating bearish strength.
Negative directional dominance currently favors sellers.
The MACD similarly shows bearish divergence beneath the zero line, while Bollinger Bands are contracting toward the lower band. Together, these signals increase the likelihood of significant downward volatility for the token.
The $0.40 zone is therefore not only an important resistance level but also an area with a clear supply overhang.
Cardano shows weakness amid broader headwinds
Cryptocurrencies closed much of the past year under pressure as broader market headwinds persisted.
Bitcoin has struggled to hold key levels and slipped to a low near $80,000 before bouncing. BTC’s retreat from above $97,500 appears to have constrained momentum for leading altcoins.
QCP analysts recently noted that while the macro backdrop could eventually support bulls, volatility may remain elevated. Both Bitcoin and Ethereum therefore carry risk unless the market sees clearer spot buying.
Vaulta is one of the altcoins that has failed during this pullback, and Cardano’s on-chain metrics—such as dormant supply activation—point to similar selling pressure.
Recent rejections at the 50-day EMA follow a sharp drop on October 10, 2025, when prices fell from above $0.82. The moving average now sits at $0.41 and has recently contributed to a decline to a $0.37 low.
ADA currently rests on fragile support near $0.38, and negative funding rates could favor short positions.
This classic bearish signal suggests retail optimism is fading. A 26% decline in daily volume also reveals weak conviction, leaving the price vulnerable to another test of the main supply zone.
If ADA fails to reclaim $0.40 on rising volume, it risks a roughly 10% drop that could push prices down toward multi-month support levels near $0.32.