Cardano Price Struggles, but $0.43 Still Stands As the Key Recovery Level

Key Insights:

• Cardano price is consolidating after a 9% weekly drop, but on-chain signals show selling pressure is slowing and buyers are quietly returning.
• Rising Chaikin Money Flow suggests money is flowing into ADA even as the price stays weak, pointing to a possible stabilization.
• A break above $0.43 could trigger a 13% recovery toward $0.48, while a drop below $0.37 risks a deeper slide toward $0.34.

Cardano price is still under pressure after a weak week. ADA is down about 9% over the past seven days and fell another 3.8% in the last 24 hours. On the surface, this looks like a normal dip in a weak market. But when traders look deeper, the picture is more mixed.

Some signals warn that the drop may not be finished. Other signals show money quietly flowing back in. This clash is why Cardano’s price is now at an important point rather than a simple downtrend.

Cardano Price Pullback Shows Different Hints

Between Dec. 9 and Jan. 6, Cardano price has slowly gone lower. During the same period, the RSI moved higher. RSI, or Relative Strength Index, measures how strong buying or selling momentum is. When price falls, but RSI rises, it creates a hidden bearish divergence.

This type of divergence often appears before a pullback.

It signals that the price is rising or holding up even though momentum is weakening. In simple terms, buyers are getting tired. That signal likely explains why ADA price started slipping after early January.

However, RSI is not the only tool traders watch. Another indicator, called Chaikin Money Flow, or CMF, is now telling a different story.

CMF tracks whether money is entering or leaving an asset. When CMF rises, it means more money is flowing in than out. When it falls, money leaves.

While Cardano price dipped in early January, CMF actually moved higher. This creates a bullish divergence. It shows that even as prices slipped, buyers were still quietly adding positions.

Right now, CMF sits around positive territory, showing steady inflows. This matters because strong sell-offs usually come with falling CMF. That is not happening here. Instead, the pullback looks more like a pause.

Falling Coin Activity Signals Selling Pressure Is Cooling

On-chain data also supports the idea that selling pressure is fading. One key metric to watch is spent coin activity. This shows how many coins are being moved, possibly to be sold on the network.

In late December, Cardano saw very high activity, with around 225 million ADA moving. High activity during a downtrend often means traders are rushing to sell.

That number has now dropped sharply to roughly 29 million ADA. This big slowdown suggests fewer holders are moving coins. When fewer coins move, it usually means sellers are stepping back.

This is important because strong price drops need active sellers. If sellers dry up, the price often stabilizes or slowly recovers. Lower activity does not guarantee a rally, but it reduces downside risk near support levels.

This cooling behavior fits with the rising CMF. Money is coming in, while fewer coins are being pushed out. Together, these signals suggest the recent pullback may already be playing out.

Cardano Price Levels To Track

Cardano price has been stuck between $0.37 and $0.40 since Jan. 8. This tight range shows neither buyers nor sellers are fully in control.

The most important resistance sits near $0.43. This level lines up with key Fibonacci levels and recent rejection zones.

If ADA price breaks above $0.43 with strength, it opens the door for a move toward $0.48. That would be about a 13% recovery from current prices.

Some analysts remain optimistic about Cardano in the long term. But in the short term, the price still needs confirmation. Optimism alone will not push ADA higher without a clean breakout.

On the downside, $0.37 remains critical support. If Cardano loses this floor, the next strong support sits near $0.34, 11% from the current price point. This level has worked as a strong support earlier this cycle. A dip below $0.37 could trigger another wave of selling before buyers step in again.

As long as the Cardano price holds above $0.37 and CMF stays positive, the pullback seems to be limited. A break above $0.43 would confirm recovery. A drop below support would reopen downside risk.