Renowned Analyst Warns of Cardano Drop as Key Resistance Trigger Rejection

• Cardano has been rejected from the descending channel, and if the bears take charge, the crypto can decline further to $0.63 or $0.54.
• A symmetrical triangle pattern is forming, but indicators like RSI and MACD suggest weakening momentum.
• Despite whale accumulation in April, falling open interest and macro uncertainty point to cautious sentiment around ADA’s next move.

Cardano ($ADA) has been rejected at the upper boundary of a descending parallel channel, according to a chart shared by analyst Ali Martinez. The rejection near $0.68 indicates a possible move toward $0.63 or even $0.54 if downward pressure continues. This bearish channel was established as early as the second half of 2024, and the chart was posted on May 6, 2025.

Martinez’s analyst demonstrates that ADA has lower highs and lower lows with a multi-month downward-sloping channel. This rejection occurred at 0.618, which is significant because it often presents a reversal zone in prior periods. However, this is only possible if bulls do not regain the top of the channel, as it remains in the process of possibly going lower.

At press time, Cardano is trading at $0.6604, dropping by 5.54% in the last 24 hours. Since the price is currently trading below the 50-EMA of $0.6704, technical conditions support a cautious stance. Prices slipping below $0.63 may lead to further retracement towards the next support at $0.54 near Bollinger bands and demand level.

Triangle Pattern Builds, But Momentum Signals Bearish Bias

Analyst Token Talk and Carl Moon pointed out a symmetrical triangle with the Cardano 4-hour chart. Current support and resistance levels have made higher lows, with ADA price forming a bullish pattern, and high volatility typically follows.

Bullish analysts believe that $ 0.7730 will be the level from which the currency pair will break out. However, a breakdown could pull the price back to the analysis level of $0.6280. Token Talk said that breaking $0.70 would be the go signal for Bitcoin, and as expected, it happened the very next day. It has also, time and again, dampened rally attempts while remaining the basis for even greater advances.

If the bulls come to the forefront, Carl has a target of $0.7730 to be realized. However, if a breakdown occurs, the price might fall to $0.6280. Token Talk considers $0.70 as the prospective reversal level.

However, some momentum indices are biased towards bearishness as this pattern formation becomes consolidated. The RSI value has decreased to 45.88, indicating a declining strength for the MACD plot. On the same note, the MACD has given a bearish signal through a crossover where the MACD line is below the signal line. 

Whales Buy Heavy, But Speculative Appetite Drops

Large addresses accumulated ADA by 410 million tokens in April, demonstrating accumulation. A higher level of whale placements is often associated with expected furthering gains, especially when accompanied by a decline in market supply.

However, the speculative demand has decreased. ADA’s open interest fell by 6.18% in the last 24 hours to $750.38 million. This decline implies that fewer traders are active in the process and less committed to investing at these price points. However, if open interest does not increase with the breakout above $0.70, short-term selling pressure remains dominant.