As the cryptocurrency market nears the end of the month, bearish forces appear to be taking control, particularly impacting Cardano (ADA). Currently, ADA”s price is around $0.35, following a notable retreat from its recent highs. Meanwhile, Bitcoin has dipped below $89,000, and Ethereum is testing the psychological threshold of $3,000.
Cardano is entering a pivotal phase as it approaches a critical price zone that will likely influence its future trajectory. The token has shown signs of weakness against Bitcoin, placing it under significant bearish pressure and sustaining a downtrend. The current focus is whether ADA can maintain support within the $0.30 to $0.35 demand zone, a historically significant area that has previously sparked rebounds. Should sellers prevail, a deeper decline to $0.28 could be on the horizon.
On the weekly chart, ADA is trading around $0.356, reflecting a steady decline from its 2025 peaks. This price point is pressing into a well-established demand band, which has historically served as a launching pad for upward movements. The importance of holding this range is heightened as the monthly close approaches. Successfully defending this area could stabilize market sentiment and encourage buying activity. Conversely, a breach below this level would signify a loss of confidence among investors.
Despite the decline, buyers still have an opportunity to support the price structure. Current momentum indicators suggest that ADA is losing traction and has drifted lower than the mid-range, with a declining trend corridor indicating weakening bullish momentum. The immediate support is found within the $0.30 to $0.35 range, while a significant downside marker exists at approximately $0.282.
For ADA to regain a more favorable outlook, it must reclaim the $0.42 level, which would decrease the chances of a breakdown and shift attention back toward a potential recovery towards $0.50. Currently, the MACD indicator remains negative, indicating that sellers still hold the upper hand in momentum.
Examining ADA”s performance against Bitcoin reveals a concerning trend. The ADA/BTC pair remains ensconced in a protracted downtrend, currently hovering near 0.0000040 BTC. This persistent pattern suggests that capital might be remaining within Bitcoin rather than rotating into Cardano. Until ADA can stabilize and break free from this downtrend, any rallies observed in USD prices may struggle to maintain momentum.
The current level around 0.0000040 BTC is crucial, signaling that buyers are attempting to establish a solid foundation. A decline below this support would reinforce the bearish narrative and indicate further underperformance in comparison to Bitcoin. For a change in sentiment, ADA/BTC must first reclaim the midline of its descending channel and then confront the upper boundary.
As the monthly close approaches, Cardano”s next move will be critical. With ADA sitting near the key support band of $0.30 to $0.35, the outcome will depend significantly on buyers” ability to defend this area. A rebound above $0.42 could initiate a more stable recovery towards $0.50. However, losing this support—particularly if the price falls below $0.282—would shift the narrative from a mere pullback to a full breakdown, heightening downside risks for investors.
In summary, the ADA/BTC chart remains a vital indicator of Cardano”s strength relative to Bitcoin. Without an improvement in relative strength, any rebounds in USD will likely be fleeting. The coming days are crucial as the market awaits the monthly close, which will serve as a key signal for either stabilization or further weakening into the next month.
