Cardano (ADA), the tenth-largest cryptocurrency by market capitalization, has found itself stuck in a bearish downtrend despite the broader bullish momentum in the crypto market. Since reaching a local high of $0.86 in mid-May 2025, ADA has corrected significantly, sliding nearly 27% to its current trading price of around $0.62. The price decline follows a strong performance earlier this year when Cardano surged 68% from a low of $0.51 in early April, driven by renewed investor optimism and overall market strength.

However, ADA’s failure to maintain that upward trajectory and its decoupling from Bitcoin’s bullish run have raised concerns among investors and market analysts. While Bitcoin has continued to display strength, Cardano has struggled to hold its gains, falling into a corrective phase that now spans five consecutive weeks.

Crypto analyst MasterAnanda, in a recent TradingView update, shed light on the factors behind ADA’s current bearish setup and outlined the key steps needed for a trend reversal. One of the most pressing technical issues lies in Cardano’s positioning below two critical moving averages: the 34-period exponential moving average (EMA34) and the 200-day moving average (MA200). These indicators are often used by traders to assess the overall health and direction of a trend. A price below both typically signals bearish conditions, and this is exactly where Cardano stands today.

According to MasterAnanda, ADA’s current placement between the EMA34 and MA200 casts a bearish shadow over the asset’s near-term prospects. This positioning makes Cardano look technically weaker than its peers, such as XRP and Ethereum, which are currently holding better relative strength. Despite the prevailing negative sentiment, the analyst points out that Cardano’s ongoing correction, now in its fifth consecutive week, may be approaching exhaustion, suggesting a potential for reversal in the coming weeks.

To initiate a bullish turnaround, ADA needs to break above a critical resistance range. Specifically, the asset must reclaim the $0.68 to $0.70 zone, which aligns closely with the EMA34 ($0.70) and the MA200 ($0.67) on the weekly chart. Reclaiming and closing above this range would signal a return of buying pressure and could mark the end of the current bearish cycle. Until then, MasterAnanda advises investors to remain patient, noting that a move from the current level to the $0.70 region would represent a 10% to 13% rally—an encouraging but necessary first step.

While the broader recovery hinges on reclaiming this key range, other analysts are focusing on the support levels that could shape ADA’s short-term behavior. In a separate analysis, market observer CryptoPulse highlighted two key zones of support to watch if the current downtrend persists. He points to ADA’s trend within a descending triangle, a bearish technical pattern, and emphasizes the base of this triangle as a critical support.

The primary support zone identified by CryptoPulse lies between $0.50 and $0.55. This area has proven to be a strong demand zone in the past, with ADA rebounding from it on two separate occasions earlier this year—in February and April. A breakdown below this range could see ADA decline further toward the next significant support, located between $0.42 and $0.50. This lower zone is supported by a long-term ascending trendline and previously served as a major resistance area prior to ADA’s breakout in November 2024.

CryptoPulse believes the $0.42 to $0.50 range could act as an ideal accumulation zone if ADA’s bearish momentum deepens. On the other hand, if these supports hold strong, Cardano could mount a recovery and move toward the upper boundary of the descending triangle. This resistance lies around the $0.71 to $0.75 level, potentially setting the stage for a more sustained upward movement if breached.

In summary, Cardano is at a crossroads. The asset has endured a prolonged correction and currently sits beneath key technical indicators, reinforcing its bearish outlook. However, with strong support levels in place and a potential reversal looming, reclaiming the $0.68–$0.70 range could shift momentum in ADA’s favor. As the market seeks clarity, all eyes will be on whether ADA can rise above these hurdles and rejoin the broader crypto rally.