The Cardano blockchain presents investors with a puzzling scenario: its native cryptocurrency, ADA, is experiencing a severe technical breakdown while its underlying ecosystem demonstrates remarkable strength. This divergence creates a complex investment landscape where bearish chart patterns clash with bullish fundamental metrics.

Ecosystem Thrives Despite Market Pessimism

Even as ADA’s price action paints a gloomy picture, network activity tells a different story entirely. Recent Messari data for the third quarter of 2025 reveals substantial growth across key performance indicators:

• Daily active addresses surged by 19.2%
• Transaction volume increased 15.7% daily
• Total value locked in DeFi protocols jumped 28.7% to $423.5 million

Simultaneously, Cardano’s ecosystem expanded its real-world utility through the launch of the “Cardano Card” at the Berlin Summit. This partnership with payment processor Wirex provides over 6 million customers across 130 countries with direct access to spend ADA in everyday transactions.

Technical Analysis Signals Continued Weakness

From a chart perspective, ADA’s performance remains concerning. The cryptocurrency has not only broken below crucial long-term horizontal support but has been trading within a descending parallel channel since December 2024. Technical indicators compound the bearish outlook, with the RSI hovering at oversold levels and the MACD maintaining negative territory.

Should investors sell immediately? Or is it worth buying Cardano?

Market analysts suggest further declines are likely unless ADA can reclaim the $0.60 to $0.70 resistance zone. The sentiment among larger investors appears equally cautious, with whales divesting more than 4 million ADA tokens recently—a move interpreted as declining confidence from institutional participants.

Potential Reversal Patterns Emerge

Despite the overwhelmingly negative technical posture, several factors could signal an impending turnaround. The RSI reset to levels last seen in July presents a potential buying opportunity, as similar conditions preceded a 97% price surge over 54 days during that period. Additionally, a falling wedge pattern developing on daily charts suggests selling pressure may be diminishing.

For any sustained recovery to materialize, however, ADA must convincingly reclaim the $0.60 threshold. Until that occurs, technical analysts warn of possible further declines toward the $0.40 to $0.45 range. The central question remains whether Cardano’s strong fundamental growth can eventually translate into price appreciation, or if ADA will continue tracking the broader altcoin market weakness.

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