- Cardano price fell to $0.37 after being rejected again around $0.40.
- Technical conditions point to a possible continuation of the downside to $0.32.
- ADA price has fallen 4% in the past 24 hours.
Cardano’s ADA token is falling, facing a brutal supply wall near $0.40, where relentless selling pressure threatens to derail bulls’ hopes for a prolonged rally.
With short-term downside risk remaining for top coins, the token traded nearly 4% in the red on Friday, hovering around $0.38. As the chart below shows, ADA traded to a daily low of $0.379.
Cardano price hits supply wall around $0.40
Cardano’s price action has recently encountered a formidable supply wall around 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, which acts as a stubborn ceiling and has signaled multiple price rejections thus far.
Meanwhile, the Relative Strength Index (RSI) on the daily chart is currently hovering below the neutral mark. In technical analysis, this highlights a possible expansion towards oversold territory with a sloping outlook.
Another indicator, ADX, read a value of 19.5, indicating bearish strength.
Negative directional dominance favors sellers.
The MACD similarly shows a bearish divergence below the zero line, while the Bollinger Bands are narrowing towards the lower rail. All of this adds up to the token facing significant downside volatility.
So while the $0.40 zone is just another major resistance level, it is a zone of supply overhang to keep an eye on.
Cardano shows weakness amid widespread headwinds
Cryptocurrencies ended last year on a largely bearish note due to market-wide headwinds.
This caused Bitcoin to struggle to defend key levels and fall to a low of $80,000 before rebounding. However, BTC has retreated above $97,500 and this appears to be capping the momentum of the top altcoins.
Analysts at QCP recently noted that while the macro environment could support a bull market, volatility could remain high. Therefore, both Bitcoin and Ethereum present a risk-off outlook unless the market confirms a cleaner spot bid.
Vaulta is one of the altcoins to falter during this downturn, and Cardano’s on-chain metrics such as dormant supply activation are showing similar selling pressure.
The recent rejection from the 50-day EMA also comes after the price plunged above $0.82 on October 10, 2025. The moving average is currently sitting at $0.41, which recently caused a decline to a low of $0.37.
Currently, ADA has returned to the fragile support at $0.38, and with funding rates turning negative, short sellers may have the upper hand.
This classic bearish signal shows that retail optimism is fading. However, a 26% decline in daily volumes belies weak conviction and prices may once again explore a major supply zone.
If ADA price does not regain $0.40 on a surge in volume, there is a risk of a 10% breakdown that could bring multi-month support to the low $0.32.
