Cardano Price News: ADA rebounds after a 15% plunge, can the $0.32 support hold as the bulls and bears focus on this level

January 26 News, Cardano ecosystem token ADA has continued to weaken over the past week, with the price once dropping to around $0.34, a decline of about 15% from the previous high. The current market focus is around the $0.33 level, which has historically attracted buying interest during multiple downtrend cycles and is seen as a short-term support and resistance level.

From a technical perspective, ADA is still operating within a clear downtrend channel, with the price forming lower highs and lower lows, indicating that medium-term selling pressure has not yet abated. Analyst Butterfly pointed out on January 25 that ADA is approaching the lower boundary of the channel, with selling momentum beginning to slow. Some funds are attempting to position at low levels, but the overall trend has not yet reversed.

TradingView data shows that the midline of the channel is the first target for short-term bulls. Once buying interest increases, the price may rebound toward this area. However, stronger resistance is concentrated between $0.60 and $0.70, which has historically been the endpoint of rebounds. Therefore, until a breakout of the structure occurs, any rebound is more likely to be a correction.

The weekly indicators are also bearish. ADA is currently below the 20-week, 50-week, and 200-week moving averages, all of which are above $0.50, indicating that it will take time for the bulls to regain control. The Money Flow Index is only at 16.8, showing insufficient new capital inflow; MACD remains in negative territory, with bearish momentum still dominant. The daily RSI hovers around 39, suggesting short-term sentiment is cautious.

The derivatives market is also cooling down. Data from Coinglass shows that Cardano’s open interest has fallen to a one-month low, indicating traders are less willing to establish new long or short positions. If the $0.32 support level is broken, the price could retest the low at $0.27 from the end of last year. For investors, the gain or loss of this support level will be a key variable in judging ADA’s future trajectory.