On June 5, 2025, the Cardano to United States Dollar (ADA/USD) pair created a bearish flag pattern on the 4-hour chart.
A bearish flag pattern forms after a strong downward move, followed by a short-term consolidation inside parallel, upward-sloping lines. This pattern usually signals that the downtrend will continue after the price breaks below the lower boundary of the flag.
In this case, ADA/USD dropped sharply from above $0.74 to a low near $0.66, forming the “flagpole.” The consolidation phase between roughly $0.66 and $0.70 shaped the flag.
If the pattern confirms with a breakdown below the lower trendline of the flag, the price may drop another 17 percent from the current level of $0.6802. That move would target approximately $0.5641, as marked on the chart.
The 50-period Exponential Moving Average (EMA), now at $0.6987, acts as resistance. Price action remains below the EMA, confirming that bears still control momentum.
Additionally, volume has declined during the consolidation phase, which aligns with the typical structure of a bearish flag. If volume increases during a breakdown, it would validate the pattern and increase the likelihood of a move toward the $0.5641 target.
The structure remains valid as long as the price stays inside the red channel. A confirmed close below the support line would activate the bearish setup.
ADA/USD MACD Signals Weak Momentum Shift Despite Bullish Crossove
The MACD (Moving Average Convergence Divergence) indicator for Cardano to United States Dollar (ADA/USD) showed signs of a weak bullish crossover on the 4-hour chart.
The MACD line stood at –0.0044 while the signal line measured –0.0045. The blue MACD line slightly crossed above the orange signal line, hinting at a potential shift in short-term momentum. However, the narrow gap between the two lines suggested that this move lacked strength.
At the same time, the histogram, which shows the difference between the MACD and signal lines, shrank toward the zero level. That reflected a rapid loss of buying pressure. From June 1 to June 4, the histogram had printed light green bars, confirming mild bullish momentum. Now, the bars have flattened, showing reduced volatility.
If the histogram flips back into negative territory, it may confirm the end of the short recovery and signal continued weakness. This signal aligns with the bearish flag pattern forming on the price chart, which points to a possible 17 percent decline from the current level of $0.6802 toward $0.5641.
Overall, the MACD indicator suggests that bullish attempts are losing strength. Traders now watch for either renewed upside momentum or a breakdown to validate the bearish setup.
ADA/USD RSI Shows Weak Momentum Below Neutral Zon
On June 5, 2025, the Relative Strength Index (RSI) for Cardano to United States Dollar (ADA/USD) printed a reading of 45.72 on the 4-hour timeframe. The yellow moving average line, which smooths RSI movements, showed a slightly higher value at 47.20.
The RSI tracks recent price gains and losses over 14 periods to measure momentum. Values below 50 indicate weakness, while those above 50 show strength. Overbought conditions begin at 70, and oversold conditions start below 30.
ADA/USD remained below the neutral 50 threshold for most of the past two weeks. The RSI dipped under 30 on May 31, signaling a temporary oversold condition. However, the price failed to generate strong follow-through. After briefly climbing above 50 on June 2, the RSI fell back under the moving average, confirming that buying pressure faded.
Currently, the RSI line moves upward but still lags under the average, showing weak bullish effort. The chart reflects sideways momentum, with neither bulls nor bears gaining control.
This RSI behavior aligns with the bearish flag and weak MACD crossover seen on other ADA/USD indicators. Together, these signals suggest that Cardano remains under pressure despite minor recovery attempts. A break below the current RSI support trend could trigger further downside in line with the flagged bearish continuation pattern.
ADA/USD DMI Shows Weak Trend Strength as Buyers and Sellers Lose Momentu
Meanwhile, the Directional Movement Index (DMI) for Cardano to United States Dollar (ADA/USD) showed declining trend strength on the 4-hour chart.
The orange line represents the Average Directional Index (ADX), currently at 25.80, which measures overall trend strength. Readings above 25 typically suggest a strong trend, but this value now shows signs of flattening.
The red line is the +DI (Positive Directional Indicator), which tracks bullish pressure. It sits at 22.23, slightly below the ADX. The blue line, –DI (Negative Directional Indicator), reflects bearish strength and stands at 18.71.
Earlier in the month, the +DI crossed above –DI, confirming short-term bullish momentum. However, over the past two days, both DI lines have converged, and the ADX has begun to curve down. This shift suggests that the trend is losing direction and momentum.
If the +DI fails to climb and the –DI regains dominance, bearish continuation may follow. This would support the bearish flag breakdown setup already visible on ADA’s price chart.
The current DMI structure signals indecision, with no clear control by either buyers or sellers. As long as the ADX weakens and the DI lines stay close, ADA/USD is unlikely to gain a strong trend direction.
This technical indicator, paired with neutral signals from the MACD and RSI, confirms that ADA remains in a vulnerable position, lacking both bullish strength and trend clarity.
ADA/USD Faces Rejection Near Bollinger Midline as Volatility Tighten
On June 5, 2025, Cardano to United States Dollar (ADA/USD) showed increased downside pressure after rejecting the midline of the Bollinger Bands on the 4-hour chart.
The price traded at $0.6769 while the middle Bollinger Band, based on the 20-period Simple Moving Average (SMA), stood at $0.6839. The upper and lower Bollinger Bands were located at $0.7038 and $0.6640, respectively, indicating a narrowing volatility range.
ADA/USD also remained below the 50-period Exponential Moving Average (EMA), which sat at $0.6985. Price action has failed multiple times to break above this dynamic resistance level, showing that sellers continue to dominate near the trend line.
The current Bollinger structure shows reduced volatility, suggesting a possible sharp move soon. As long as ADA trades below the EMA and midline, bearish risk remains elevated. A close below the lower Bollinger Band at $0.6640 could trigger a new wave of downside momentum.
Meanwhile, volume remains weak at 2.31 million, further confirming a lack of strong buying interest during this consolidation phase. This setup supports the broader bearish flag structure identified in earlier ADA/USD technical patterns.
