Crypto analyst Ali Martinez, also known as Ali Charts, has issued a bearish technical warning for Cardano (ADA), stating that the altcoin has lost a key support level and could be vulnerable to a deeper correction. According to Martinez, ADA had been trading inside an ascending parallel channel from late June, rallying from $0.138 to $0.282, but it has now broken below the channel's lower boundary. This breakdown, he said, is a technical signal pointing to further downside.
The most critical level to watch is $0.220. If that level continues to act as resistance, Martinez expects selling pressure to intensify and ADA could lose approximately 20% of its value, potentially falling to $0.166. At the time of writing, ADA was trading near $0.2056, down 1.15% on the four-hour candle, with volume reaching 4.44 million ADA. The token previously climbed to around $0.28 on October 6, then broke below $0.25, $0.24 and $0.23, forming lower highs and lower lows. A recovery attempt near $0.23 around October 21 failed, and renewed selling pushed the price toward $0.20.
Momentum indicators support the bearish picture. The Relative Strength Index (RSI) is at 34.77, below its moving average of 37.40 and close to the oversold threshold of 30. The MACD line is at -0.0038, below the signal line at -0.0033, with a negative histogram reading of -0.0005. Immediate support lies between $0.2040 and $0.2000, while resistance sits around $0.22 to $0.23; a move back above $0.21 could offer initial relief.
Separately, Germany’s DZ BANK has included Cardano alongside Bitcoin, Ethereum and Litecoin on its meinKrypto platform. The MiCA-authorized service integrates cryptocurrency trading and custody into the VR Banking App, with participating cooperative banks able to offer the service through existing banking infrastructure. Each bank must still decide whether to adopt it and complete the required regulatory notification.
