Cardano (ADA) Stuck Under Descending Resistance; $0.22 Support at Risk
Cardano (ADA) remains trapped in a well-defined descending channel, forming lower highs and lower lows since peaking near $0.60 in November. Recent weakness pushed ADA to around $0.22 — the channel’s lower boundary and a critical support zone. A modest rebound to $0.263 failed to reclaim meaningful resistance, leaving sellers in control. If selling intensifies, a fall from $0.263 to $0.22 would be roughly a 16% decline. Conversely, sustained buying would need a move above the channel toward resistance near $0.34 to invalidate the bearish structure. Traders are watching intermediate levels: $0.25 could trigger liquidity cascades tied to leveraged positions, and Coinglass data shows notable liquidation clusters — about $424,350 in long liquidations near $0.25 (ADA/BTC on Binance) and roughly $735,890 in short-liquidation liquidity near $0.28. Near-term direction hinges on a clear break of descending resistance or a breakdown below $0.22; absent that, bearish momentum is likely to persist. This content is for information only and not financial advice.
Bearish
The article describes a persistent descending channel, lower highs/lows, and failure to reclaim resistance—classic bearish structure. Key support at $0.22 is tested and could lead to further downside if broken; a 16% decline from current levels is highlighted. Short-term liquidation clusters near $0.25 and $0.28 raise the risk of volatile cascades that typically exacerbate downtrends. Conversely, the article notes that only a decisive break above the channel and resistance near $0.34 would invalidate the bearish case. Historically, assets confined to descending channels with repeated rejection at resistance and concentrated liquidation points often continue lower until a clear reversal signal (higher highs and reclaimed resistance) appears. Therefore, expected market impact is bearish short term (increased selling pressure, higher volatility). Longer term, if buyers reclaim the upper channel and $0.34 resistance, sentiment could shift neutral-to-bullish, but current structure favors further downside unless momentum changes.