Cardano (ADA) is facing a potential decline of roughly 20% toward $0.166 after crypto analyst Ali Charts reported a breakdown below the token's rising price channel. ADA continues to trade near the $0.20 mark, with bearish momentum visible across its four-hour chart, as technical indicators point to sustained selling pressure. In separate news, Germany's DZ BANK has included Cardano among four cryptocurrencies offered through its meinKrypto platform, alongside Bitcoin, Ethereum, and Litecoin.

Ali Charts Pins $0.220 as Key Resistance

In a post on X, Ali Charts said ADA had traded inside a rising parallel channel since late June, climbing from $0.138 to $0.282. The token has since fallen below the channel's lower boundary, raising the possibility of a deeper correction. Rising parallel channels are a standard charting tool for framing an uptrend, and a close below the lower boundary is conventionally read by technical analysts as a sign that the prevailing trend has weakened.

According to the analyst, $0.220 is the level most likely to cap recovery attempts. If that price continues to act as resistance, ADA could slide approximately 20% toward $0.166, a projection derived from the channel pattern itself.

Recent price action supports the reported weakness. ADA previously traded in the $0.24–$0.26 range before reaching roughly $0.28 around October 6. It then slipped below $0.25, $0.24, and $0.23 in succession, printing lower highs and lower lows. A recovery attempt toward $0.23 around October 21 failed, and renewed selling pushed the price back toward $0.20. As shown in the chart published on TradingView, the latest four-hour candle closed at $0.2056, down 1.15%, on volume of 4.44 million ADA.

RSI and MACD Signal Continued Selling Pressure

The RSI tracks the pace of recent price moves, while the MACD measures shifts in trend momentum, making both widely followed barometers of short-term market direction. ADA's Relative Strength Index (RSI) stands at 34.77, below its moving average of 37.40. The reading places momentum near, though not yet at, the widely watched oversold threshold of 30.

The MACD line sits at -0.0038, beneath its -0.0033 signal line, and the histogram reads -0.0005, pointing to continued downside momentum. Together, the two indicators suggest selling pressure has yet to ease. Immediate support lies between $0.2040 and $0.2000, while resistance stands around $0.22–$0.23. A recovery above $0.21 could provide initial relief.

DZ BANK Adds Cardano to MeinKrypto Lineup

In a separate development, DZ BANK's meinKrypto platform has selected ADA alongside Bitcoin, Ethereum, and Litecoin for its initial offering. The MiCA-authorized service integrates cryptocurrency trading and custody directly into the VR Banking App. DZ BANK acts as the central institution for Germany's cooperative banks, the Volksbanken Raiffeisenbanken network whose customers use the VR Banking App. Authorization under MiCA — the EU's Markets in Crypto-Assets Regulation — places the service under the bloc's harmonized licensing regime for crypto-asset firms, replacing reliance on individual national rules.

Participating cooperative banks can offer the service through their existing banking infrastructure. However, adoption is not automatic: each institution must decide whether to offer the service and complete the required regulatory notification. The rollout's eventual footprint will therefore depend on how many banks in the network opt in.

Source: Cryptofrontnews