Cardano Forecast for Jan 8: Here Are Potential Price Case Scenarios for ADA Price

Cardano faces a critical support zone, with technical indicators signaling potential for either a bullish reversal or further declines.

The Cardano (ADA) price has been losing its early January gains, with a 5.5% decline over the past 24 hours. The crypto initially rode a wave of bullish momentum at the start of the year, as seen in its brief push above $0.42 by January 6. However, it has since encountered resistance, causing the price to fall back towards the $0.395 level.

The price drop indicates a loss of steam for the bulls, as the crypto faces difficulties holding above key support levels. The current trading volume of over $648 million indicates significant market participation, albeit plummeting by over 20%. If this downward trend continues, further consolidation or even a dip to lower support levels could play out. Can bulls defend support?

Can Cardano Bulls Find Support?

Specifically, Cardano’s weekly chart indicates a period of consolidation, with the price currently testing the lower end of its recent range. The Parabolic SAR indicator is showing dotted lines above the price action, signaling a bearish trend.

For Cardano to find support and potentially reverse its downward movement, the SAR must flip bullish, meaning the dots would need to shift below the price, indicating an uptrend. 

Until then, Cardano will continue to face pressure to hold above the $0.36 level, which has served as key support. A failure to hold here could lead to further downside, targeting the next support at around $0.33.

Resistance for Cardano lies near the $0.48 mark, where the price struggled to break through earlier in December 2025. Cardano’s ability to push above this level and the Parabolic SAR flipping bullish would be crucial for a sustained upward movement. However, if the price fails to reclaim the $0.48 resistance, further declines may occur, pushing Cardano toward lower support levels. 

The Stochastic RSI on the monthly chart for Cardano shows the oscillator in oversold territory, currently below the 20 mark. This suggests that the asset may be experiencing bearish momentum, with the potential for a reversal if the Stoch RSI starts to rise from these low levels.

ADA at a Make-Or-Break Zone

On the X commentary side, Anup Dhungana, a Trader and Market Analyst, states that Cardano is currently consolidating inside a rising wedge pattern on the monthly time frame. 

According to him, the price, sitting around $0.416 at the time of his post, is sitting near the lower trendline support, which he considers a critical make-or-break zone for the asset. With the price currently at $0.39, it might have broken the pattern’s support line, raising concerns about further declines and testing lower support levels.