Cardano (ADA) Price Jumps 8.6% as Midnight Launch Sparks Interest — But Charts Still Point Lower
Cardano (ADA) has gained 8.6% in the past 24 hours as excitement grows around Midnight, its new privacy-focused subchain. While this development is drawing attention, the chart suggests the bounce may be part of a broader downtrend, not the start of a recovery.
ADA continues to trade inside a bear flag on the daily chart. A bear flag forms when a sharp decline is followed by a small upward channel that often leads to further downside. Between November 10 and December 9, the price formed a lower high while the RSI formed a higher high. This hidden bearish divergence indicates that buying momentum is weak and sellers remain dominant. With ADA already down more than 50% this year, this divergence supports the case for continued pressure.
The bear flag’s projection points to a possible 39% drop if the lower trendline breaks, targeting the $0.25 area.
On-chain data also supports the bearish view. Large whale wallets holding more than 1 billion ADA sharply reduced their positions after December 8, dropping from about 1.86 billion ADA to nearly zero. Such aggressive exits typically show expectations of cheaper prices ahead or an intention to sell into temporary strength.
Additionally, the Spent Coins Age Band shows rising activity. Daily moved ADA increased from 95 million on December 6 to more than 130 million by December 10, a 37% jump. This suggests that both newer and older holders may be sending coins to the market, reinforcing the idea that traders are selling into the bounce.
Key price levels now matter. A drop below $0.42 would confirm the bear flag breakdown and open the path toward $0.37. If this level fails, the full projection toward $0.25 becomes more likely. For bulls, ADA must reclaim $0.55 and maintain levels above $0.60 to neutralize the bearish setup. Until then, downside risk remains higher than upside potential.
