Cardano Price Squeeze Tightens as ADA Prepares for Next Move - Blockonomi

TLDR:

• Cardano holds firm at $0.7298 support while facing resistance from a long-term downtrend line.
• MACD crossover and RSI near 40 signal neutral momentum with downside pressure building.
• Narrowing Bollinger Bands reflect reduced volatility ahead of possible sharp price action.
• Analysts await a breakout as trading volume stays low and price nears squeeze pattern apex.

---

Cardano’s ADA token is trading in a tight range near a key support level, prompting close attention from market watchers. 

The digital asset is holding above a historical demand zone, although it remains capped by a descending resistance trendline. Despite a strong defense at the bottom, the price has struggled to reclaim momentum to the upside. 

Traders now look for a potential breakout that may depend on volume and broader market cues. Meanwhile, chart signals suggest a squeeze pattern is forming, pointing to a crucial decision point for ADA price action.

Cardano Price Holds Key Support, Faces Downtrend Resistance

ADA continues to defend the horizontal support near $0.7298, a level that has repeatedly drawn buying interest. This area aligns with previous accumulation zones and has held firm despite broader market pressures, according to analyst Crypto Rand.

$ADA continues defending the main horizontal support but unable to trigger the breakout over the downtrend resistance. Tracking the squeeze here 👀 pic.twitter.com/zIPqSGX4yU

— Crypto Rand (@crypto_rand) June 4, 2025

However, price action remains capped by a descending trendline that forms a squeeze pattern. 

This technical setup may precede a sharp move, depending on upcoming volume surges. If ADA pushes above the downtrend line, resistance levels at $0.80 and $0.85 could come into play.

Cardano’s daily chart reveals a neutral-to-bearish bias based on several technical tools. The Relative Strength Index stands at 39.78, indicating the asset is neither oversold nor overbought. This neutral reading suggests a balanced sentiment among traders, with no immediate directional bias.

The MACD histogram displays a bearish crossover, with both lines trending toward the zero mark. This points to weakening upward momentum and raises caution for bulls. 

In addition, trading volume remains relatively low, suggesting limited commitment from market participants unless a new catalyst emerges.

ADA Price Indicators Highlight Range-Bound Setup

Further analysis shows the ADA price hovering below the Ichimoku cloud, a bearish signal in traditional technical frameworks. 

The Tenkan-sen is positioned under the Kijun-sen, supporting the prevailing negative tone. Unless ADA can break above the cloud, upside moves may be limited.

The Bollinger Bands are also narrowing, reflecting reduced volatility. This signals continued consolidation between $0.66 and $0.73 unless the market reacts to an external driver. A breakout above the upper band or cloud may offer a bullish reversal, though risk currently leans to the downside.

Broader macroeconomic conditions may influence Cardano’s trajectory in the short term. 

Discussions among traders suggest that tariffs or rising inflation could increase market uncertainty. Such developments often prompt tighter monetary policy, which has historically weighed on digital assets like Cardano.

Despite this backdrop, some traders remain optimistic. Market participant @Av_Sebastian noted growing buying pressure and suggested bulls are preparing for a move. 

However, until ADA clears the trendline resistance, price action is expected to remain constrained within the current range.