Cardano (ADA) has been under significant selling pressure in recent weeks, with its price dropping sharply from highs near $0.85 to just above $0.50 in less than two months. According to CoinGecko, ADA has lost over 24% of its value in the past month, erasing much of the gains seen earlier in the second quarter of 2025.
Technical Analysis: Descending Channel Signals More Downside
Market analyst Ali Martinez recently highlighted a bearish pattern on Cardano’s three-day chart: a descending channel. This technical formation, defined by parallel downward-sloping trendlines, often indicates a persistent downtrend and lower highs. Prices tend to oscillate between these lines, with the lower trendline acting as support and the upper as resistance.
Martinez suggests that unless ADA can break above the upper boundary of this channel, the next significant support could be around $0.47. This level aligns with both the lower trendline and the 1.272 Fibonacci retracement, a common technical indicator used to identify potential support and resistance zones.
Recent Price Action and Outlook
As of June 28, 2025, Cardano is trading near $0.56, showing a modest 1,3% rebound in the last 24 hours. However, the token remains down more than 3% over the past week, reflecting ongoing bearish sentiment. The inability to break above the channel’s resistance in early May has left ADA vulnerable to further declines, with technical signals pointing toward a possible retest of the $0.47 area.
Broader Market Context
While some long-term forecasts for Cardano remain optimistic—predicting potential highs above $1.00 in 2025 if key resistance levels are cleared—short-term technicals suggest caution. The current descending channel pattern and recent price weakness highlight the importance of monitoring support levels and broader market trends for any signs of reversal or further downside.
