Cardano ($ADA ) continues to trade under pressure, remaining in a clear bear cycle since its peak on December 2, 2024. Since the August 11, 2025 high, price action has been moving inside a well-defined downward channel, reflecting sustained bearish momentum.
Technically, this Channel Down structure appears to be part of a larger 5-year cycle, acting as the bearish leg following the previous bull phase. So far, the pattern is showing strong similarities to the 2022 market structure.
One interesting signal comes from the 1-week RSI, where a bullish divergence is forming — similar to what was seen around June 2022. This could indicate that the market is approaching a potential turning point. However, confirmation will depend heavily on overall market conditions.
If broader crypto$BTC market weakness continues, $ADA could still follow a deeper correction path. In a worst-case scenario, a move similar to the previous cycle’s -92% drop could occur, potentially targeting the $0.10 level.
For now, traders should stay cautious and closely monitor both technical indicators and market sentiment.
Key Insight: While early reversal signals may be forming, the broader trend remains bearish — and risk management is essential in this phase.
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