Cardano price continues to weaken as the bearish market structure remains intact, with failed resistance retests and weak demand increasing the risk of a deeper correction.
Summary
- Bearish market structure with consecutive lower highs intact.
- Loss of the control point shifts the price to a lower value.
- Weak demand increases downside risk towards $0.27.
The price action of the Cardano price (ADA) continues to reflect ongoing bearish pressure, with the market structure leaning firmly to the downside. Despite brief consolidation attempts, each rally was capped by lower highs, reinforcing the broader downtrend.
Recent price behavior suggests sellers remain in control, and without a meaningful shift in demand, Cardano risks extending the decline to lower longer-term support levels.
Cardano Prize main technical points
- Lower highs continue to drive Cardano’s downtrend
- Loss of the control point shifts the focus to a lower value
- A weak reaction to the Value Area Low increases the downside risk towards $0.27
From a market structure perspective, Cardano remains in a clear bearish trend, characterized by successive lower highs and lower lows. Every attempt to regain higher levels has failed, reinforcing the idea that upward moves are corrective rather than impulsive. This behavior is typical of markets where sellers maintain control and buyers lack conviction.
One of the most notable developments was Cardano’s rejection of the $0.48 high time frame resistance. After falling below this level, the price attempted a backtest, a common technical behavior that often determines whether a breakdown will hold. In this case, the backtest failed and the price was rejected, confirming $0.48 as a strong supply zone and validating the continuation of the downtrend.
After this rejection, Cardano briefly consolidated around the Point of Control (POC). The POC represents the area of highest trading volume within the recent range and often acts as a pivot between bullish and bearish control. Above this level, however, the price has since lost acceptance, signaling a transition from equilibrium to a lower value.
With the POC acting as resistance, the price has rotated towards the Value Area Low (VAL) of the broader trading range. This area typically attracts responsive buying, but the current response has been noticeably weak. The lack of a strong bullish follow-through indicates that demand is limited, increasing the likelihood that support will fail rather than hold.
Weak reactions at the Value Area Low are often a warning sign. In stronger markets, price typically produces impulsive rebounds from this region, supported by rising volume. In the case of Cardano, the absence of such behavior implies that buyers are unwilling or unable to absorb the selling pressure, leaving the door open for further downsides.
From a price action perspective, candles continue to reflect seller dominance, with upside attempts selling quickly and downside momentum remaining intact. As long as Cardano continues to form lower highs below previous support levels, the bearish structure remains valid.
Liquidity dynamics also argue for a lower continuation. Below the current price, there is relatively limited structural support until the swing low near $0.27, which represents the lower end of the wider trading range. Markets often gravitate toward such levels to mop up remaining liquidity, especially when intermediate support zones fail to attract strong demand.
Importantly, a move towards $0.27 would not be unusual within the context of Cardano’s broader structure. Rather, it would represent a continuation of the prevailing trend, allowing the market to test deeper demand before a possible rebalancing.
What to expect in the upcoming price action
As long as Cardano remains below the Point of Control and continues to push lower highs, the downside risk remains high. Failure to produce a strong, high-volume bounce from the Value Area Low will increase the likelihood of a rotation towards the $0.27 swing low.
Any bullish invalidation would require Cardano to regain lost resistance levels and establish acceptance above the POC, a signal that has not yet appeared. Until then, the path of least resistance remains lower, with further short-term downside likely.
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