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The price of Cardano is trading near its weakest levels this year. The symbol has decreased by about 24% in the last 30 days and by about 5% in the last 24 hours, keeping its proximity to its lowest level for the year near $0.37. What sets this move apart is not just the size of the decline, but the structure behind it.
In just two months, Cardano completed two separate breakouts of a continuation of the downward trend, putting new pressure on the chart and increasing the possibility of a deeper move.
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Two bearish collapses in two months indicate structural weakness
The first meeting took place at the beginning of November. ADA has been building a bearish flag since the end of October, after the breakout happened around November 11th. This move led to a sharp decline, with the price falling about 38% from the high point of the model.
After a short accumulation phase, Cardano repeated the same pattern. A second bearish flag formed from late November to early December. On December 11, ADA fell again, confirming the continuation of the trend for the second time in just two months.
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When markets print recurring patterns of continuing downtrends without a noticeable recovery, this indicates continued selling control and not short-term panic in the market. If the current breakout follows the same measured movement logic as the first breakout, downside targets will begin to converge around the $0.25 area.
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Because this same vulnerability can limit further damage
Despite the bearish structure, there are two factors that contribute to slightly mitigate the downside risks.
First, the positioning of the derivatives is found to be significantly bearishly biased. Clearing data from Gate showed that long leverage is very weak, with long trades amounting to only about $27 million and short trades worth about $135 million, five times more. Most of the long position liquidation rallies ended around $0.36, which means that the forced selling pressure drops sharply at this level. The number of long and crowded trades reduces the probability of a large series of sales.
Proven behavior of long-term currency holders. The category of holders of one to two years, often seen as those with the strongest conviction, has seen a sharp drop in spending, as shown by the Currency Spent Barometer, which aggregates currency movements by denomination.
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Coins transferred by this group decreased from 666.24 million ADA to only 2.48 million ADA as of December 10, a decrease of about 99.6%. This suggests that selling pressure from committed holders is drying up, even as the price remains weak.
In simple terms, the weak ADA spooked leveraged trading and slowed down long selling, which could act as a temporary brake during broader market pressures.
Article key points for ADA fee levels to watch
Cardano’s price chart remains fragile. $0.36 is considered the most important support in the near term. The same level was highlighted in the filter map shared earlier.
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A clear break below opens the door to $0.33, and from there, a calculated breakout target near $0.25 appears on the horizon.
For any bullish recovery, ADA must claim the $0.48 level. Without this, the highs remain corrective and not a change in trend.
Now, Cardano is in a dangerous situation.
Two collapses in two months set the trend. The weakness itself has slowed down the decline, but if the structure does not improve, the risk of testing $0.25 cannot be ignored.
