ADA Still Trapped in a Bear Flag: Bullish Sentiment Rising, Price Falling
As excitement grows surrounding Midnight, Cardano’s new privacy-focused subchain, its price is up 3.31% in 24 hours. The midnight phase of the lunar cycle typically denotes a reset. In other words, it signifies the beginnings of something fresh. However, for ADA, this reset can mark the start of a fresh plunge.
On the daily chart, Cardano is now trading inside a bear flag. A dramatic fall followed by a smaller, upward-sloping channel generates a bear flag. That channel often pauses the downturn. Moreover, the RSI rose while ADA fell between November 10 and December 9. RSI rising but price not following frequently indicates a weak comeback and sellers still in charge. This concealed bearish divergence supports the impression that the downturn is ongoing since ADA is down 54% over the past year.
Cardano Whales Exit Billion-ADA Positions: Is a Major Crash Coming?
Since December 8, the largest Cardano whales, with wallets holding over 1 billion ADA, have cut their exposure. Within days, their balance dropped from 1.86 billion ADA to virtually zero. Whales don’t empty positions like this unless they predict lower entry points or want to exit strong.
This behavior is confirmed by another on-chain metric. The Spent Coins Age Band tracks daily ADA token movement in young and old wallets. On December 6, 95.26 million ADA entered the blockchain. That figure rose 37% in four days to 130.46 million ADA by December 10. This increase suggests more holders, especially elderly ones, are selling coins. Whale balances falling and spent coins rising usually indicate traders selling during the bounce.
ADA Faces Breakdown Risk: Could Cardano Crash to $0.25 Next?
The following moves are dependent on a few distinct levels because the chart and on-chain signals are both leaning negative. The lower trendline of the bear flag breaks if the price of ADA drops below $0.42. The price may then decline to $0.37 from there. The likelihood of a complete flag projection towards $0.25 increases if the $0.37 level cannot be sustained. According to the formation, this would suggest a 39% reduction.
Bulls have a smaller but still feasible path. Cardano needs to recover $0.55 first. The bearish setup would be weakened if a daily closure above this level broke the bear flag’s upper border. The Midnight Phase is transitioning from a reset into a more positive recovery if it continues to hold above $0.60.
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