Cardano rose 15% following a breakout from a falling channel but failed to break through resistance at $0.84. A bearish engulfing candle now suggests the possibility of a deeper correction. As altcoins continue to climb, while Bitcoin holds steady around $110,000, Cardano has posted a modest 2.6% gain over the past 24 hours. However, despite holding above $0.80, a short-term pullback warns of a potential steeper correction as ADA reverses from a key resistance level. Cardano Price Analysis On the 4-hour chart, Cardano displays a double-bottom reversal from $0.7225, confirming a breakout from a falling channel pattern. The resulting rally led to a 15% gain, peaking at the critical $0.84 supply zone. Cardano Price Analysis Currently, Cardano is down nearly 4% over the past four hours, failing to break above the $0.84 resistance level and forming a bearish engulfing candle. This suggests bullish exhaustion and a likely deeper pullback. Supporting the bearish outlook, the 4-hour RSI has dropped sharply from the overbought region, reflecting a sudden decline in bullish momentum. However, the MACD and signal lines remain in a positive trend, with bullish histograms still intact, indicating a lack of clear bearish crossover. According to trend-based Fibonacci levels, the failure to hold above the 50% Fibonacci level at $0.8253 signals a potential trend reversal. The bearish engulfing candle also highlights increased selling pressure. Price action indicates mild support near $0.7745, followed by stronger support at $0.7225. Cardano Bullish Positions Worth $943K Wiped Out in 4 Hours As Cardano experiences a steeper correction, long liquidations in the past four hours have totaled approximately $943,000. Additionally, the funding rate has sharply dropped from a peak of 0.0212% to 0.0107%, reflecting a significant decline in bullish sentiment among derivative traders. ADA derivatives Despite rising bearish sentiment, open interest remains steady at $972 million, with a 3.76% increase in the past 24 hours. This suggests that trading activity continues to grow despite short-term market volatility. ADA Records 30% Quarter-on-Quarter Growth in Stablecoin Market Cap Looking beyond the short-term correction, the on-chain analytics platform Messari recently highlighted strong growth metrics for the Cardano network. With increasing DRep (Delegation Representative) participation, the stablecoin market on Cardano has grown by 30%, while the DeFi diversity score has risen by 13%. The report also notes a 5% increase in Cardano’s treasury balance (in ADA), signaling growing ecosystem support. As the Cardano network expands, rising demand for ADA could support a rebound in spot prices.