Time to Sell ALL Your Cardano (ADA) Tokens? Market Signals Turn Critical

Cardano has spent the past month trading in one of its weakest technical structures of the entire year. While Ethereum and Solana both staged sharp recoveries and pushed into stronger momentum phases, ADA remained stuck in a slow grind downward. The result is a chart that shows clear exhaustion among buyers, fading volume, and several indicators pointing toward a market that is still searching for a bottom.

ADA Price Performance: A Month of Lower Highs

The 2-hour chart reveals a persistent downtrend stretching from mid-October to late November. The ADA price consistently printed lower highs and lower lows, falling from the $0.64 region into the $0.38–$0.43 zone. Every bounce was met with aggressive selling, and none of the rallies managed to reclaim the mid-trend structure.

In short: Cardano has been drifting sideways only after losing a major portion of its momentum.
Compared to ETH and SOL, both of which recovered strongly, ADA’s performance has been one of the weakest among L1s.

ADA Chart Analysis: Support and Resistance, Critical Zones to Watch

Despite the weak momentum, the Cardano chart shows two key areas traders are focused on:

Immediate Support:

  • $0.38–$0.40
    This zone caught ADA twice in November and remains the last line before a deeper correction. A breakdown here opens room toward $0.34.

Immediate Resistance:

  • $0.47–$0.50
    This area rejected ADA multiple times. Until ADA closes above this level on higher volume, there is no confirmed reversal.

Right now, ADA is stuck in the middle; trading inside a consolidation range without the strength to break upward.

Source: CoinAnk

Cardano Momentum Indicators; RSI Analysis: Neutral but Weak Momentum

The RSI is hovering mostly between 45 and 55, showing a market with no strong buying pressure.
This is especially concerning after a large downtrend; oversold bounces usually push RSI into the 60–70 region. ADA failed to do that.

Interpretation:

  • Buyers are passive.
  • Sellers still control the trend.
  • No bullish divergence is visible, meaning no early reversal signal yet.

MACD Analysis: Flat and Losing Momentum

MACD on the 2-hour timeframe tells a similar story.
Throughout November, MACD produced tiny, shallow bullish waves that quickly lost power. Crossovers have been weak, and the histogram is flattening again.

This means:

  • Momentum is not building.
  • Buyers are hesitant.
  • The market is drifting rather than reversing.

Until MACD prints a strong bullish wave above the zero line, ADA will remain heavy.

Net Long vs Net Short: Smart Money Is Not Accumulating

The net long and net short data paints one of the clearest pictures in the entire chart.

  • Net Longs are declining
  • Net Shorts remain elevated and stable

This imbalance shows that larger traders are not positioning for a rally. Instead, they are either hedging or expecting additional downside.

Whenever a token enters a strong accumulation zone, longs rise sharply and shorts unwind, but ADA is not showing that behavior.

This is not what strong bottoms look like.

Is ADA Falling Behind Other Layer-1s?

Yes, clearly.

Ethereum reclaimed psychological levels and stabilized.
Solana has been one of the strongest assets of the year, climbing aggressively, attracting record on-chain activity and new users.

Cardano, in contrast:

  • Has not broken any significant resistance
  • Is still far from its previous all-time high
  • Shows weak trading demand
  • Continues losing attention compared to other L1s

This cycle has punished slow ecosystems, and ADA’s chart reflects the sentiment perfectly.

ADA Price Outlook: December and Early 2026

Based on the current structure:

Bullish Scenario:
If the ADA price breaks above $0.50, momentum could push toward $0.58–$0.62.
This requires strong volume and broader market strength.

Neutral Scenario:
Consolidation between $0.38 and $0.47 continues.
This is the most likely scenario unless something triggers new demand.

Bearish Scenario:
A breakdown below $0.38 opens room toward
$0.34 → $0.30 → $0.26, depending on Bitcoin’s direction.

ADA is not showing strong reversal signals yet.

Should Holders Sell ADA Now?

Here is the balanced, data-driven answer:

Selling makes sense if:

  • You expect stronger returns from SOL, ETH, or higher-momentum altcoins
  • You’re tired of ADA’s slow performance
  • You want to exit laggards and rotate into leaders

Holding makes sense if:

  • You believe in ADA’s long-term staking, decentralization, and dev roadmap
  • You expect a macro-wide altcoin rally where liquidity lifts all assets
  • You’re positioned for late-cycle laggard pumps (which do happen)

But based purely on the chart:
ADA is still in a clear downtrend, showing low demand, flat indicators, and weak accumulation.
Nothing suggests a strong breakout is imminent.

Subscribe to our YouTube channel for daily crypto updates, market insights, and expert analysis.

intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

Tags:

Petar Jovanović
Petar Jovanović

As the Head of Content at Captainaltcoin, I bring years of experience in the crypto industry. With a strong belief in the potential of the web3 market since 2017, I'm passionate about sharing valuable insights and knowledge. Feel free to connect with me on LinkedIn and let's discuss the exciting world of cryptocurrencies and decentralized technologies!

CaptainAltcoin
Logo