• Cardano’s Chaikin Money Flow hits a three-month high, signaling renewed capital inflows.
• Price is testing critical support levels around $0.666 and $0.596 amid bearish momentum.
• Technical indicators suggest potential further downside unless support holds.

Cardano (ADA) has drawn renewed attention from investors as the Chaikin Money Flow (CMF) surged to a three-month high, indicating a rise in capital inflows.

This move comes after a recent market correction, during which many traders have been looking for opportunities to accumulate at lower prices.

Currently, ADA is trading at $0.648, reflecting a weekly decline of 7.56%. Despite this drop, historical trends suggest that such accumulation phases often precede market recoveries, hinting that investors may be positioning themselves ahead of a potential rebound.

However, the technical picture shows caution. The price has fallen below the 20-week exponential moving average (EMA) at $0.730, signaling weakening short-term momentum. 

ADA is now hovering near its 50-week EMA at $0.666, a critical support zone that could determine whether the downtrend continues or stabilizes.

A further break below this level may accelerate bearish sentiment, bringing the 100-week EMA at $0.596 and long-term 200-week EMA at $0.525 into focus as potential safety nets for buyers.

Also Read: Cardano (ADA) Set for a Bullish Breakout? Key Technical Levels to Watch

Indicators Signal Bearish Pressure

A number of important technical indices are signaling the increased bear pressure on ADA. The Relative Strength Index (RSI) stands at 43.51 and is falling, and this tells us that buying strength is declining.

At the same time, the MACD has registered a bear crossover, where the MACD line crosses down via the signal line, and the histogram registers a negative momentum. This duo suggests a further development of falling pressure unless determined buyers intervene.

The candlestick chart also registered higher volatility. ADA has just gone below the middle Bollinger Band and is approaching the lower band at $0.525. This broad Bollinger Band width highlights the increased price fluctuations, and that ADA might soon reach an oversold situation, provided the downtrend maintains its path.

Cardano Eyes Key $0.730 Resistance

Support and resistance levels in the next days will be important. Near-term resistance lies at $0.730, and a rebound to this level is necessary to any bull case.

On the bear side, the 50-week EMA at $0.666 comes into play and is tested, with the 100-week EMA at $0.596 offering medium-term support. The 200-week EMA, coinciding with the lower Bollinger Band at $0.525, is still the ultimate line of defense for the long-term holders.

A breakdown on these support levels could ignite additional selling pressure, while a technical rebound from the $0.596–$0.525 zone could provide short-term relief.

Also Read: Cardano Faces Critical $0.70 Resistance: Will ADA Break Through?