Cardano Stalls Below $0.70 as Bulls Lose Steam
ADA''s price action looks lethargic—traders yawn as the ''Ethereum killer'' fails to break resistance. Another day, another crypto asset struggling to justify its market cap.
Technical indicators flash weak momentum, with no signs of a near-term catalyst. Meanwhile, Bitcoin maximalists smugly sip their coffee.
Price Drops Below Key Support
Over the past week, ADA has broken below several key technical support levels. The most notable breach was of the $0.72 support, a level that had acted as a strong base for bullish activity throughout the previous quarter. Following this, Cardano’s price dipped nearly 11.7%, pushing it under a critical rising trendline on the 4-hour chart.
This trendline had served as a backbone for the asset’s recent rebound attempts, and its loss is considered a red flag for momentum traders. With the price now hovering around $0.68, there is real concern that if this support fails to hold, ADA could revisit the $0.60 level—a significant psychological and technical marker.
Technical Indicators Show Weak Momentum
From a technical analysis standpoint, things aren’t looking much better. The Relative Strength Index (RSI) is hovering NEAR 31.90, suggesting that ADA is entering oversold territory, but not convincingly enough to inspire buying interest. More worryingly, the Stochastic RSI recently crossed down from overbought levels, signaling the potential for further downside.
The Moving Average Convergence Divergence (MACD) has also flipped negative, indicating growing sell-side pressure. Meanwhile, ADA remains well below the 200 EMA on the 4-hour chart, further reinforcing the bearish narrative.
Adding to the caution, Bollinger Bands have started tightening, often a precursor to significant price movement. However, given current market sentiment and volume patterns, the next MOVE could very well be a continuation downward rather than a recovery.
Capital Outflows and Slumping Developer Activity
Beyond the charts, on-chain data tells a similarly bleak story. Capital appears to be flowing out of Cardano’s ecosystem. The Chaikin Money FLOW (CMF), which measures capital inflows and outflows, is in the red, confirming that liquidity is exiting the network.
Developer activity—long hailed as one of Cardano’s Core strengths—has also taken a hit. Data shows a 30% drop in development contributions over the last three months. While this could be part of a broader market slowdown, it adds to the list of concerns for a project that prides itself on research-backed innovation.
Moreover, Cardano’s Total Value Locked (TVL) has seen a sharp decline. According to DeFiLlama, TVL has dropped from $680 million in December 2024 to just $326 million in June 2025—a nearly 52% decrease. This retreat indicates that DeFi participation on the Cardano blockchain is dwindling, which could limit its ability to attract new users and developers in the near term.
Is There Any Bullish Case Left?
Despite the prevailing negativity, some traders continue to see potential for a short-term bounce—if, and only if, ADA can reclaim levels aboveand hold them convincingly. A more significant bullish reversal, however, WOULD likely require a breakout above, a level that has eluded the token for many months.
Cardano’s long-term supporters continue to argue that the project’s fundamentals remain strong and that current setbacks are merely temporary. They point to upcoming upgrades, smart contract innovations, and strategic partnerships as potential catalysts. However, the near-term technicals do not support this optimism, and traders are being warned not to expect miracles without a major shift in momentum.
Final Thoughts: High Risk, Limited Reward for Now
Cardano’s current price structure, combined with weakening fundamentals, suggests that ADA may not be the best bet for short-term gains. While long-term holders may still believe in its vision, the reality is that market participants are becoming increasingly wary.
Unless ADA can reclaim key resistance zones, re-establish developer momentum, and attract capital back into its ecosystem, the risk-to-reward ratio appears skewed to the downside. In the current environment, traders may want to keep a close eye on broader market movements and wait for clearer signs of reversal before jumping back into Cardano.
As the altcoin market continues to evolve, ADA will need more than promises and whitepapers to stay competitive. Without tangible improvements on both the price chart and the protocol level, cardano risks falling further behind newer, more agile layer-1 competitors.
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