- Cardano’s latest rejection from a lower trendline reinforces a bearish outlook and points to continued weakness in near-term price momentum.
- Dan Gambardello identifies potential correction targets near $0.62, though Fibonacci support around $0.80 could limit deeper declines.
- Despite bearish signals, ADA’s position above major moving averages may help cushion short-term downside pressure amid broader market volatility.
Market analyst Dan Gambardello has issued a cautious outlook for Cardano after the cryptocurrency faced another rejection from a key lower trendline. The asset, which recently struggled to reclaim crucial support levels, is showing signs of further weakness. According to Gambardello, Cardano’s latest price action signals a potential continuation of its bearish phase following repeated failures to sustain recovery momentum.
Gambardello noted that the current market behavior appears inconsistent with historical patterns. He attributed this deviation to what he describes as significant price manipulation across the crypto market. The analyst believes that external forces are slowing down a broader altcoin breakout, despite the ongoing growth in institutional and nation-state crypto adoption that should typically push asset prices higher.
Missed Timeline From Historical Pattern
In his analysis, Gambardello compared the current cycle to the 2020 breakout, which followed 714 days of consolidation after the 2018 bear market. Using a similar timeframe, he found that the latest 714-day consolidation ended in May 2025, marking the expected period for another surge. However, Cardano failed to replicate the earlier momentum, indicating reduced investor enthusiasm and weaker technical signals than in the previous cycle.
Cardano is losing, having dropped by 6.7% on September 22, below the previous support, which was at 0.90. A planned recovery back to $0.89 on October 3 was turned down, and ADA dropped back to its present trading range of about $0.82. Such two rejections indicate that there is stiff resistance and the asset stands squarely on the bearish side.
Downside Targets and Potential Support Levels.
Gambardello estimated that future weakness might cause the correction to the mid-0.60 area, potentially to $0.62. But he pointed out that Fibonacci retracement numbers could contribute to stabilizing the fall with significant supports of $0.808 and $0.785. Moreover, ADA is on the other side of the 20-week and 50-week moving averages, which are at the moment at around $0.770 and $0.794, respectively, which might act as technical floors to eliminate steeper losses.
