Cardano’s path to recovery depends on breaking through resistance amid weak funding flows, hopes of a Midnight launch and divided sentiment on its long-term viability.
Summary
- Cardano shows a bullish RSI divergence but remains stuck below the key resistance at $0.53, limiting the confirmation of a recovery trend.
- Chaikin flows remain negative, indicating absent institutional demand and vulnerable sustainability to any short-term increases
- The upcoming Midnight sidechain launch and treasury-funded stablecoin plans are in stark contrast to the ‘ghost chain’ criticism and uncertain 2026 rankings.
Cardano’s price recovery remains dependent on breaking a key resistance level at $0.53, according to the technical analysis published by The Coin Republic.
The cryptocurrency has experienced continued weakness in recent weeks, with the chart showing lower prices and limited buyer activity during attempted rallies, according to the analysis. Technical indicators present conflicting signals about short-term price direction.
The Relative Strength Index (RSI), a momentum indicator that measures buying and selling pressure, is showing a divergence pattern that could indicate waning selling pressure. From November 2024 to November 2025, the price of Cardano (ADA) formed a higher low while the RSI formed a lower low, a pattern that technical analysts often interpret as a potential precursor to a recovery.
However, the Chaikin Money Flow (CMF) indicator remains below zero, indicating that institutional capital has not entered the market in significant volumes. The negative CMF value indicates that upward price movements may not be sustainable in the short term, the technical assessment said.
Cardano has several development initiatives planned for deployment. The Midnight sidechain, a privacy-focused layer designed to allow developers to build applications with enhanced protection of user data, is expected to launch in early December. Network management groups are also exploring the allocation of treasury funds to support the development of a tier-1 stablecoin infrastructure.
Cardano has several development prospects in the works
Market sentiment remains divided on Cardano’s prospects. One analyst characterized the network as a “ghost chain” and predicted a potential decline from the top rankings by 2026, citing low network usage and competitive pressure from alternative blockchain platforms.
Other market observers have indicated that a test of higher price levels in December remains possible, especially if broader cryptocurrency market conditions improve. According to these reviews, the launch of Midnight can generate more attention for the network.
Technical analysts have identified the $0.53 level as crucial for validating bullish price predictions. A sustained close above this resistance would yield higher price targets, with the potential for significant gains if broader cryptocurrency market strength materializes. Failure to exceed this level would likely result in continued trading within a range without clear directional momentum.
According to the technical outlook, a decline below current support levels would postpone a substantial price increase for a longer period.
Cardano was trading at a market cap that placed it among the top cryptocurrencies in terms of valuation as of publication. The network continues to actively develop despite recent price weakness and technical uncertainty.
