• Cardano (ADA) faces ongoing bearish momentum, trading below all major weekly EMAs around $0.41.  
• Significant support levels exist at $0.33, $0.28, and $0.20, as indicated by Fibonacci extensions.  
• The upcoming Midnight release on December 8 may trigger bullish price action if key resistance zones are approached.  

Cardano (ADA) continues to battle prolonged bearish momentum as it trades near $0.41, well below the 20-, 50-, 100-, and 200-week exponential moving averages (EMAs).

The weekly chart reveals that the cryptocurrency has failed to sustain the mid-2024 recovery rally, keeping it within a corrective structure that dates back to its post-2021 peak.

Recent price action shows ADA breaking below clustered EMAs and the middle Bollinger Band, signaling renewed dominance by sellers.

The lower Bollinger Band now contains the price, suggesting compressed volatility and oversold conditions, though a confirmed reversal has yet to materialize.  

Momentum indicators further reinforce the bearish outlook. The 14-day RSI sits near 34, still above extreme oversold levels but clearly in negative territory.

There is no visible bullish divergence, highlighting that sellers continue to control momentum. Similarly, the weekly MACD remains negative, with the MACD line below the signal line and red histogram bars persisting, pointing to continued downward pressure.  

Cardano Critical Support Levels and Fibonacci Targets  

The chart analysis shows that if the bearish sentiments in the market persist, the price of ADA may drop further. According to the Auto Fibonacci levels chart for the graph given in the previous answer, the supports for the graph lie at $0.33 and $0.28, and the 1.618 level is at $0.20.

These zones have historically acted as accumulation points, and traders may watch for bullish signals around these levels.

Resistances lie in the $0.70-$0.75 region. This corresponds to the top Bollinger Band and the long EMAs. Such pressure interferes significantly with attempting any sort of recovery.

Compression by Bollinger Bands, together with the Fibonacci support levels in the near term, indicates the region of accumulation. However, we require the weekly closes to occur above the 20-week EMA levels along with better momentum in the market.

Also Read: Cardano Blockchain Survives Targeted Attack: Node Upgrade 10.5.3 Rolling Out

Potential Reversal if Mid-$0.60s and 20-Week EMA Surpassed

Market analysts also notice the potential bullish catalyst in early December. Mr. Brownstone indicated on X that the largest weekly trading volume in 2025 for the ADA is $0.72.

There could also be the effect of the Midnight event on December 8. Once the price of ADA surges past the 20-week EMA at the mid-$0.60 levels, the initial process of halting the bearish trajectory might begin.

At the current point in time, ADA is also experiencing selling pressure. Additionally, the momentum indicator suggests either ranging market actions or decline.

To enter into longer positions in the market, one must wait for the weekly candle to form a bullish engulfing candle on the chart.

Also Read: Cardano Didn’t Fall, Charles Hoskinson Responds to Network FUD