ADA Bears Hold Control as Hoskinson Questions CLARITY Act Odds

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ADA Bears Hold Control as Hoskinson Questions CLARITY Act Odds

• ADA breaks range support, shifting bearish as sellers defend the former floor.
• Oversold RSI and bearish MACD warn weakness may persist despite nearby demand zones
• Stable open interest with net spot outflows shows leverage stays active, sellers lead

Cardano price slipped into a weaker zone after ADA broke below its recent trading range on the 4-hour chart. The move pushed ADA toward $0.364 on Kraken, and it raised fresh concerns about whether buyers can regain control in the near term.

ADA Breaks Key Support as Bears Hold Control

ADA previously traded inside a tight range, with support near $0.386 and resistance around $0.405 to $0.410. However, sellers forced a sharp breakdown, and price failed to recover the former floor quickly. Consequently, the drop shifted the short-term structure into a downtrend, with bulls now needing to defend lower levels.

The first support zone sits between $0.364 and $0.355, which aligns with the breakdown region and key Fibonacci markers. If that area fails, ADA could slide toward the next major base near $0.328 to $0.330. That level reflects a prior swing low and a stronger demand zone. Hence, traders now view $0.355 and $0.330 as important downside checkpoints.

ADA Price Dynamics (Source: Trading View)

ADA faces its first rebound barrier between $0.382 and $0.386, which previously served as support. However, sellers may defend that level aggressively, since it now acts as overhead resistance. Additionally, the main resistance band remains at $0.405 to $0.410, and price must reclaim it to improve momentum.

If buyers push beyond that zone, the next targets sit around $0.414 to $0.415, followed by $0.438. Significantly, those levels could attract profit-taking, even if ADA stages a short-term recovery.

Momentum indicators still show stress. RSI sits near 26, which signals oversold conditions and heavy selling pressure. Moreover, MACD remains bearish, and it points to continued weakness unless momentum shifts.

Open Interest Stays Elevated as Hoskinson Criticizes CLARITY Act PushSource: Coinglass

Cardanos open interest stayed quiet for much of the year, then surged sharply in mid-November as leveraged activity returned. After that spike, OI turned volatile, with repeated build-ups and flush-outs. Recently, OI stabilized near $750 million, showing consistent participation despite ADA hovering around $0.38.

Source: Coinglass

Spot flow data continues to lean negative, with net outflows dominating most sessions. The latest reading showed a $1.74 million net outflow, which suggests sellers still control the tone.

Meanwhile, Input Output Global CEO Charles Hoskinson publicly criticized Ripple CEO Brad Garlinghouses support for the Digital Asset Market Clarity Act. However, Hoskinson also questioned whether the bill can survive current political conditions, and he warned the window for progress may narrow soon.