Cardano faces critical support test as momentum fades

The recent decline marks a retreat from early-October highs, where the price approached the upper boundary of a rising channel. Data from TradingView confirms that while Cardano remains significantly above its June low of $0.14, the daily Moving Average Convergence Divergence (MACD) has turned negative. With the MACD line now trailing its signal line, upward momentum has clearly stalled.

Market analysts are divided on the immediate path forward. Jesse Olson has flagged bearish divergence, warning that the current pullback could form a lower high, potentially inviting deeper retracements. Conversely, an analysis by Giannis Andreou frames the $0.224–$0.240 range as a necessary demand zone. According to this view, if buyers successfully defend this area, it could establish a higher low, setting the stage for a fresh challenge of the $0.281 resistance level. Should the price fall below $0.19, however, the broader recovery narrative would be significantly compromised.

Liquidation data adds another layer to the current volatility. CoinGlass heatmaps reveal significant overhead concentration between $0.258 and $0.262, acting as a ceiling for any immediate relief rallies. Meanwhile, on the weekly timeframe, Cardano holds above its 20-week simple moving average of $0.1988, suggesting that the longer-term structure is not yet broken despite the current daily pressure.