Cardano confirms a bearish trend after triggering CHoCH and breakdown.
$0.71 acts as strong resistance, halting upward price momentum.
Liquidity grabs signal institutional moves and further downside pressure.
Cardano (ADA) is experiencing rising bearish conditions, activating a major market structure event called Change of Character (CHoCH). The technical signal emerged during a verified phase of liquidity removal.During this period, traders withdrew liquidity at equal high ($EQH) and equal low ($EQL) levels. This creates robust proof of market attitude alteration.Source: BlockchainBaller on XThe annotation indicates that the CHoCH trigger formed less than $0.71, which proved essential for market resistance.The price structure established after a retail-trader-targeting liquidity sweep targeting EQH and EQL zones broke down to the downside.This is following a short liquidity grab. The bearish momentum indicators show sufficient evidence that the market’s trending direction has changed to a negative trajectory.
Price Action and Resistance at $0.71
ADA price is facing a powerful resistance barrier at the $0.71 mark. Many traders recognize the “supply zone” or bearish order block created at this price level.This is because it marks where the price broke down during the liquidity sweep and after the CHoCH.A market rejection near this region shows sellers have returned in force. Thereby, it stops upward momentum and causes prices to decline.Viewpoints from the technical analysis community reveal this resistance level as a point of agreement across multiple timeframes.4-hour ADA/USDT Chart | Source: TradingViewCardano exhibits bearish trends on the four-hour chart. Its price remains below the 50-day ($0.7192), 100-day ($0.7425), and 200-day ($0.7462) Simple Moving Averages (SMA) levels. This confirms ongoing negative market sentiment alongside declining bull momentum.This narrative receives supplementary evidence from the Awesome Oscillator (AO) indicator. The indicator’s histogram bars currently occupy a deep section of the red zone after reaching -0.0481. This demonstrates growing bearish strength while short-term market power weakens.
Market Stats and Short-Term Rebound
The trading price for Cardano holds at $0.6802 as it faces a 1.98% decrease in its value since yesterday. The market capitalization stands at $23.97 Billion. Meanwhile, the daily trading volume has dropped by 5.51%, amounting to $643.15 Million.ADA price experienced a limited upward trend from $0.6715 intraday minimums. Yet, this bounce has not surpassed vital moving averages or resistance levels.The sudden rebound at $0.6802 is likely a brief corrective movement in price. This is as the price continues to trade below essential SMAs, and the CHoCH remains intact.The analysis from the technical chart supports the prediction of additional price reductions in the future. A breakdown of the $0.6715 remains possible since it already experienced its initial break.The upcoming potential market point of interest exists in the $0.6600 area because buyers may return to this untested demand location.
What’s Next for Cardano?
Initial sweeps of equal highs and lows highlight institutional traders’ pursuit of liquidity. They capitalize on retail traders’ predictable patterns during these movements.The market took liquidity through EQH and EQL levels before breaking down, matching a well-known Smart Money Concept template.The CHoCH formation after the initial market grab supports a structural change demonstrating profit distribution rather than wealth concentration. Price changes indicate profit harvest and movement adjustments among dominant traders.These are those who hesitate to initiate fresh, long positions. Such conditions decrease the probability of a lasting bullish trend unless existing lower liquidity areas are cleared for future moves.ADX technicals oppose ADA’s price continuation, highlighting a consistent descending price structure. Lower highs and lower lows further support the bearish outlook for Cardano’s trend. In line with this, the token shows signs of an active short- to mid-term downtrend.A decisive breakout and sustained trading above $0.71 and prominent trading volume should indicate bullish momentum.However, until then, the market trends toward decreasing prices. A breach of the current weak low at $0.6715 will create entry points towards testing the $0.66 price area.
