Cardano Price Lacks Momentum as Downside Pressure Persists

Recently, Cardano managed to post a slight gain and climbed toward the $0.26 area. However, that move did not last long. The price has since given back those gains and is now trading at around $0.25, which fits the current broader market picture.

Although sentiment has improved somewhat compared with previous weeks, caution is still clearly visible. The initial optimism has not developed into a sustainable trend, which is why many short-term moves are quickly sold off again. The main reason remains the broader backdrop. Even though geopolitical tensions have eased slightly, uncertainty is still present. As a result, market participants are acting carefully and are not rushing to build large directional positions.

Order flow data shows that the market structure has weakened again. Positions are being reduced, with long positions in particular being closed. This is also reflected in overall activity. Volumes remain relatively low in both the spot market and the derivatives market. Many traders are staying on the sidelines and waiting for clearer signals.

Positive sentiment is still present, but for now it is not strong enough to generate sustained momentum. Instead, the market remains cautious, and profits on short-term trades are being taken quickly.

Cardano price and order flow data. / Source: Velo.xyz
Cardano price and order flow data. / Source: Velo.xyz

Cardano Price: These Zones Are Now Key

The liquidation heatmap clearly shows where the next move could concentrate. At the moment, more liquidity is clustered below the current price, which increases the probability that the market will test the downside first. The area around $0.23 is becoming especially important. The price could move into this zone if uncertainty persists or if the market structure continues to weaken.

On the upside, the potential target lies in the area up to around $0.27. If fresh positive catalysts emerge, this range could be tested in the short term. For now, however, the downside remains more likely. Until clear new demand returns to the market, the probability of Cardano testing lower levels remains higher.

Liquidation heatmap for Cardano. / Source: CoinAnk
Liquidation heatmap for Cardano. / Source: CoinAnk

Cardano Foundation Restructures for Greater Stability Behind the Scenes

Beyond short-term price action, there is also an interesting development on the fundamental side. Over the past few years, the Cardano Foundation has significantly changed the structure of its holdings. Its ADA reserves have declined slightly, while Bitcoin holdings have been reduced more sharply. Part of these positions has been deliberately reallocated into loans and other investment instruments. The goal of this approach is to ensure stable operations even during falling markets, without having to sell crypto assets.

At the same time, the share of financial assets and liquid funds has increased significantly. It now exceeds 25% of total reserves. This gives the foundation the ability to cover its expenses for a longer period without having to rely on asset sales.

Cardano is also taking new steps toward greater transparency. For the first time, audit results from an external accounting firm were directly verified on the blockchain. In this way, the foundation combines traditional financial auditing with on-chain technology. In the coming years, the focus will be on expanding infrastructure, stablecoins, and DeFi liquidity. The goal is to strengthen the ecosystem further and unlock new use cases.