 ▲ Cardano (ADA) |
Cardano (ADA) has recently shown signs of a rebound, but an analysis suggests that every rally since the 2021 bull market has ended at progressively lower Fibonacci retracement levels.
According to The Crypto Basic, analyst gnarleyquinn diagnosed Cardano’s price structure as exhibiting concerning trends. Cardano recently surged more than 14%, marking its best single-day performance since May 8, 2025. However, despite the rebound, gnarleyquinn argued that Cardano’s long-term downtrend remains unchanged.
Reviewing the analysis data, Cardano has faced persistent downward pressure since reaching its all-time high of $3.10 in September 2021. In November 2021, it attempted a recovery to $2.37 but failed to break above the 0.618 Fibonacci resistance level. Subsequent rally peaks continued to decline, reaching $1.68 in January 2022, $1.32 in December 2024, and $1.091 in August 2025. Each rally was rejected at progressively lower weekly Fibonacci levels—0.50, 0.32, and 0.236—further cementing the downward trend.
Gnarleyquinn also pointed out that even during bullish phases, Cardano failed to recover 50% of its all-time high. The current price remains more than 90% below its 2021 peak and has fallen back to levels seen during the FTX bankruptcy in November 2022. Based on these indicators, the analyst assessed that Cardano’s era may be fading—a remark referencing its sidechain, the Midnight network.
However, some argue that such criticism may be overly harsh. During the previous bull cycle, capital rotation from Bitcoin (BTC) into altcoins was limited, resulting in underperformance across most assets. Only a handful of major coins, including Ethereum (ETH), BNB, and Solana (SOL), reached new all-time highs. Founder Charles Hoskinson and other key stakeholders have emphasized focusing on ecosystem development rather than price action while waiting for improved market conditions. Hoskinson has repeatedly stressed that concentrating solely on price means the battle is already lost.
Disclaimer: This article is for informational purposes only and the publisher is not responsible for any investment losses incurred based on this content. The information provided should not be construed as investment advice.