Cardano Tanks 33% as Bearish Pattern Signals Bigger Drop Ahead

Cardano’s been sliding—and fast. In the past few weeks alone, the cryptocurrency has shed over a third of its value. And now, a risky chart pattern is flashing warning signs that things could get even worse.

ADA is currently trading around $0.576, down more than 33% from May highs and nearly 60% below its January peak. For investors, the pain may not be over yet.

Inverse Cup-and-Handle Pattern Spooks Traders

It’s not just the numbers that look rough. The daily chart is giving seasoned traders the chills.

Cardano has formed what’s known as an inverse cup-and-handle pattern. That might sound like a fancy piece of pottery, but in the trading world, it’s usually bad news.

This kind of pattern shows a rounded top—think of a regular cup turned upside down. The top part formed around $0.863 back in May.

Then came a bit of sideways action, forming the “handle” part. It’s a brief pause before the storm.

Once the price breaks below the lower support of the cup—around $0.317 in this case—analysts expect a deeper fall. Like, a lot deeper.

A Drop to $0.175? Here’s the Math.

It’s not just guesswork. Technical analysts often measure the depth of the “cup” and apply that distance below the lower support to estimate a potential price target.

Here’s what that looks like for Cardano:

• Top of the cup: ~$0.863

• Bottom support level: ~$0.317

• Estimated drop: ~$0.686

This projects a downside target of around $0.175—meaning a nearly 70% crash from current levels.

To put it simply: if ADA loses the $0.317 floor, it could fall off a cliff.

One Glimmer of Hope? That Trendline.

Not all hope is lost—yet.

If ADA somehow pulls off a rally and climbs back above the descending trendline that’s capped it since December, the bearish case weakens.

That move could send ADA back toward psychological levels like $1, where buyers tend to re-emerge.

But right now, that’s looking more like a wish than a plan.

Cardano vs Block3: New Kid Drawing Big Attention

While Cardano struggles, a newer name is grabbing headlines—and wallets.

Meet Block3, ticker symbol BL. Unlike Cardano, which is a layer-1 blockchain for DeFi, NFTs, and apps, Block3 is targeting something different: gaming.

And not just any gaming.

Block3’s promise is bold: use AI to build video games with a simple prompt—like asking ChatGPT to write a game from scratch. Imagine saying “make me a soccer game” and getting a playable version in minutes. That’s the pitch.

In theory, it could shake up big-name developers like:

• EA Sports

• Take-Two Interactive

• Unity

• Unreal Engine

A strong claim. But one that’s pulled in a lot of hype—and money.

Investors Pour In: $810K in Three Days

In just 72 hours, Block3 raised a whopping $810,000 from crypto investors.

It’s not hard to see why. Traditional game development takes months—or even years. It’s expensive, slow, and risky.

Block3 says it can do the same work in hours using AI-generated environments, characters, and mechanics. Lower costs, faster output, better margins. For indie developers and big studios alike, that’s an attractive cocktail.

The buzz has sparked a buying spree in BL tokens. If momentum continues, Block3 might not stay a niche project for long.

The Bigger Picture: Sentiment Still Cautious

Zooming out, crypto sentiment as a whole is shaky. Bitcoin has cooled off. Ethereum’s under pressure. Meme coins are up and down like a yo-yo.

Altcoins like Cardano? They’re feeling the heat the most.

Institutional money hasn’t flowed back in the way many expected after the spot Bitcoin ETF approval earlier this year. Retail investors are more cautious than before. And the market is watching macro factors like interest rates and inflation with a nervous eye.

This adds even more weight to the bearish case for ADA.

Summary: What to Watch Next

Here’s what matters now for Cardano: