Cardano has completed a decisive breakdown from a well-defined descending triangle pattern that had been consolidating price action for several months.
Currently trading around $0.54356, the cryptocurrency has fallen significantly from its earlier highs near $1.20, confirming the bearish implications of the triangle formation. The breakdown below the triangle’s horizontal support has opened the door for an extended decline, with sellers now firmly in control of the medium-term trend.
The descending triangle pattern, characterized by a series of lower highs connected by a downward sloping trendline and a relatively flat support base, typically signals continuation of the prevailing downtrend.
Cardano’s recent break below this critical support zone validates the pattern and suggests that further downside pressure could be forthcoming. The target for this breakdown would typically be measured by the height of the triangle projected downward from the breakdown point.
Long-Term Cardano Selloff
Moving average analysis reinforces the bearish sentiment, with price action trading well below both the 100 and 200-period moving averages. The 200 SMA has provided dynamic resistance throughout the decline, while the 100 SMA has crossed below the longer-term average, creating a bearish crossover configuration.
The broader chart perspective reveals that Cardano has been trapped within a pronounced descending triangle since reaching its peak in late 2024. The upper boundary of this triangle has consistently capped rally attempts, while the lower boundary has provided temporary support during oversold conditions. The recent breakdown suggests that ADA may be targeting the lower channel boundary or potentially breaking below it entirely.
The long-term technical structure shows a series of lower highs and lower lows, creating a classic bearish triangle pattern that has persisted for months. Each bounce attempt has failed to establish meaningful higher highs, indicating that buying interest remains limited even at these reduced price levels.
The failure to reclaim key moving averages during recent recovery attempts further reinforces the underlying weakness in the asset, possibly allowing bears to set their sights lower.
Further Cardano Downside
The stochastic oscillator has spent considerable time in oversold territory, which might typically suggest a bounce is due. However, the persistent nature of the oversold readings indicates that selling pressure has been relentless, with little evidence of meaningful buying interest emerging even at these depressed levels.
MACD momentum continues to reflect the underlying bearish trend, with the histogram showing predominantly negative readings throughout the recent decline. The lack of positive momentum divergence indicates that the selling pressure has not yet been exhausted, potentially setting the stage for additional downside movement.
The technical picture suggests that Cardano may need to establish a more convincing bottoming process before any sustainable recovery can take hold. Key resistance levels to watch include the broken triangle support area and the major moving averages above.
