Here at CaptainAltcoin, we’ve covered Cardano since its early days. It’s one of those projects that always sparks debate, some loving it for the tech, others question the pace of progress. But it’s time to ask the tough question: is ADA still a good buy right now?.
Cardano (ADA) has come under pressure in recent weeks, struggling to maintain bullish momentum despite broader market movements. While the long-term outlook remains in development, short-term conditions suggest a weak entry point for new investors.
Let’s go over three reasons why Cardano might not be the best pick at this moment.
What you'll learn 👉
Slow Price Action – ADA Breaks Below Key Support Levels
Cardano’s recent 11.7% price drop has pushed the token below multiple short-term support zones. On the 4H chart, Nick Regan noted that ADA broke below its rising trendline and slipped under the $0.72 level.
This area had previously acted as a floor for bullish continuation. The next technical zone to monitor is around $0.68, where previous buyer interest was observed.
The decline is accompanied by growing red volume candles, indicating stronger sell-side pressure. The market pattern shows potential for an ABC corrective structure, with a lower low still in play. If $0.68 fails to hold, deeper retracement toward $0.60 remains a possibility.
Throughout 2025, Cardano has shown rather muted price behavior compared to its peers. After starting the year in the mid‑$0.90s, ADA has largely traded within a tight range of $0.62 to $0.70, struggling to break through the $0.80 mark ever since it lost this level back in March. As of now, it sits around $0.67, moving only slightly from day to day. Over the past month, ADA has dropped approximately 17%.
All together, these figures reflect a token that’s sleeping below its potential—and indicates that ADA is far from being a strong buy right now.
ADA Chart: Weak Technical Momentum Persists
Technical indicators on the ADA chart show continued bearish momentum. ADA is now trading below the 200 EMA on the 4-hour timeframe, which suggests a shift in market sentiment.
The MACD is showing downward momentum, while the Stochastic RSI has crossed down from overbought conditions, signaling a potential short-term pullback.
Crypto market analyst Moses Ifunanya noted that ADA is currently displaying signs of exhaustion with an RSI at 31.90.
The Bollinger Bands remain tight. Price still remains compressed, indicating that volatility could expand, but in which direction remains uncertain.
On-Chain and Ecosystem Metrics Decline
Beyond price action, ADA on-chain activity has cooled. Cardano Chaikin Money Flow (CMF) sits in negative territory, showing capital outflows.
Developer participation is down over 30% in the past three months, and Total Value Locked (TVL) on the Cardano network has dropped from $680 million to $326 million since December.
These ecosystem indicators suggest a reduction in activity and engagement, while other chains such as Solana continue to see higher developer retention and user growth.
Despite a bullish chart pattern from analyst Crypto Winkle, ADA price must reclaim key technical levels above $0.70 and $1.10 to shift the market structure in its favor. Until then, downside risk remains elevated.
Read also: This Crypto Expert Predicts Where The Cardano (ADA) Price Is Headed Next
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