Cardano Price Hits Supply Wall Near $0.40: Can ADA Hold Support?

Cardano price dropped to $0.37 after another rejection around $0.40. The technical chart suggests a possibility of a decline to $0.32. ADA price has decreased by 4% in the last 24 hours.

Cardano's ADA token has dropped and is facing a brutal wall of supply around $0.40, which could dampen the bulls' hopes of a reversal from the persistent selling pressure.

The token traded nearly 4% in the red on Friday, with short-term downside risks for top coins continuing to hover around $0.38. As the chart below shows, ADA traded to a daily low of $0.379.

Cardano's price has hit a supply wall around $0.40

Cardano's price action has recently encountered a formidable supply wall around the $0.40 limit, a level that has repeatedly acted as a barrier to upside.

The 50-day exponential moving average sits at $0.41, and acts as a stubborn ceiling that has signaled a lot of price rejection.

Meanwhile, the Relative Strength Index (RSI) on the daily chart is currently below the neutral sign. In technical analysis, this indicates a possible extension of the outlook towards oversold territory.

Another indicator, ADX, shows a reading of 19.5 and indicates strength.

The dominance of the negative direction favors the sellers.

MACD similarly shows a bearish divergence below the zero line, while Bollinger Bands contracts into the lower band. All of this adds up to a massive upside volatility signal.

So the $0.40 zone is another key resistance level, but it's also a known supply overlap zone.

Cardano shows weakness in the middle of a wide headwind

Cryptocurrencies ended last year amid broad market headwinds.

This saw Bitcoin struggle to defend key levels and fall as low as $80,000 before collapsing. BTC, however, retreated above $97,500, and this seems to be a high-speed rise for the top altcoins.

QCP analysts recently pointed out that while the macro environment may boost bulls, volatility may also rise. Unless the market sees clean spot bids, both Bitcoin and Ethereum exhibit a risk-off outlook.

Volta is one of the altcoins to suffer this fall, and Cardano's on-chain benchmarks, like Dormant supply activation, point to similar selling pressure.

The latest 50-day EMA was rejected after the price declined above $0.82 on October 10, 2025. The moving average currently sits at $0.41 and has recently dropped to $0.37.

Currently, ADA has returned to weak support at $0.38, and as funding rates turn negative, shorts are likely to dominate.

This classic bearish signal indicates that retail optimism is evaporating. However, the 26% intraday decline is a weak culprit, and the price may re-examine the key supply zone.

If the ADA price does not recover $0.40 per volume increase, it risks a 10% breakout, which is a multi-month support discount of $0.32.