CARDANO BREAKDOWN CONFIRMED Since late June, Cardano has been trading within a rising parallel channel that took $ADA from a low of $0.138 to a high of $0.282. Now, Cardano appears to have broken below the channel’s lower boundary, signaling that a deeper correction could be underway. As long as $0.220 holds as resistance, $ADA could face a roughly 20% decline toward $0.166.
— Ali Charts (@alicharts) October 24, 2026
Cardano now faces a critical test: Ali observed that it appears that Cardano might have broken below the channel's lower boundary, signaling the possibility of a deeper correction.
According to the technical setup, the $0.220 level has emerged as a key resistance zone, and as long as this level holds as a barrier, $ADA could face a roughly 20% decline toward $0.166.
What indicators say
In a separate X post, Ali cited a few signals that might suggest that Cardano could be eyeing a major move, possibly downward.
According to Ali, historically, changes in the holdings of whales holding 100 million to 1 billion $ADA have often coincided with major moves in Cardano's price. But their holdings have been relatively flat for the past 10 days. So far, these large investors are not showing a clear directional bias.
The $ADA chart, however, is flashing a warning as Cardano's SuperTrend indicator has flipped bearish. The last comparable signal appeared on May 22 and was followed by a 46% correction. That doesn't mean history will repeat, but it makes the current signal worth watching.
This could spark a decline to $0.21, the lower boundary of Cardano's rising channel. A daily close below it would signal a breakdown and send $ADA to $0.17.
At the time of writing, $ADA was down 4.03% in the last 24 hours to $0.20 amid a broader crypto market drop. The cryptocurrency is down 6.05% weekly, entering its third day of decline since October 21.
In positive news, a public Dijkstra testnet has gone live, advancing testing for Cardano's next major upgrade.
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