Cardano price risks erasing 40% of ‘Trump Trade’ gains through December.

Cardano ( ADA ) price is up 140% so far in November, largely due to the election of Donald Trump as President of the United States.

However, some metrics suggest that a significant portion of the Trump-inspired ADA could be repealed in the coming days.

ADA shows a 35% correction on weak techniques

Cardano's ADA price is showing signs of low volatility as it forms a bearish “high wedge” pattern on the 4-hour chart.

A technical structure defined by a combination of upward-sloping trend lines often indicates a downward trend.

If the ADA breaks below the wedge's low trend line, the gap can be as deep as the height of the wedge's widest part.

This puts a price target near $0.598 in the short-term and indicates a worst bearish scenario at $0.513 for the November-December period.

Interestingly, the $0.513 level, roughly 35% down from current price levels, is in line with the 200-4H Exponential Average (200-4H EMA, the blue wave).

Volume has been slowing recently during the upward movement of the ADA, another warning sign of a weakening rally. Bearish patterns, like the rising wedge, are more reliable when combined with reduced trading volumes.

Additionally, the Cardano chart shows a growing gap between the rising and falling Relative Strength Index (RSI), indicating a winning divergence, indicating a weaker reversal momentum.

The RSI sits at 68, near the overbought range of 70, suggesting that ADA is in an overextended level, which could lead to a price correction.

The Cardano weekly chart supports the sell condition

A critical breakout above the wedge's upper trend, especially a large one, can devalue the outlook.

Such a move could open the door to a test of the $0.90 resistance level, from the 0.236 Fibonacci retracement trend on the ADA weekly chart.

In terms of dividend analysis, $0.90 has served a strong distribution level since April 2022.

For example, ADA fell 65-75% after testing as a counter in March 2024 and April 2022, which followed a similar correction in the November-December period.

If this happens, Cardano's next downside target appears to be resistance-turned-support on the weekly chart, which is in line with the 200-week EMA (the blue wave) at around $0.476. This is a 40% reduction from the current price level.

ADA's weekly RSI, now seven points above the 70-bought threshold, supports a long-term correction scenario.

Related: Charles Hoskinson shares new plans to help ‘support' US crypto policies

On the bright side, Cardano's fundamentals have improved due to Trump's re-election.

His administration has pledged to eliminate heavy-handed crypto regulation by 2025, such as the ADA, which could fuel demand for cryptocurrencies.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.