Cardano (ADA) has found itself once again caught in a downward current as bearish sentiment grips the broader crypto market. The ADA/USDT pair on Binance is now painting a structure that many crypto analysts interpret as a warning sign of deeper losses ahead. According to a recent technical analysis on the TradingView platform, Cardano may be heading toward the $0.40 region after briefly correcting to an important liquidity zone.

Bearish Market Structure And Liquidity Retest For Cardano

Technical analyst RLinda noted that Cardano is currently under intense bearish pressure, describing it as being in a defined bear market. The analysis was made on the TradingView platform based on ADA/USDT price action on the 4-hour candlestick timeframe since early March.

Notably, the chart shows that ADA traded within a period of sideways consolidation between March 11 and May 6, only to eventually initiate a pullback in what appears to be a classic liquidity retest move. This corrective move has now brought into focus the previously broken support zone around $0.63, which is now acting as resistance.

RLinda highlights that this resistance level, combined with the 0.5 Fibonacci retracement zone, marks the upper boundary of what is now considered a selling zone. A retest of this support is, however, very possible, and the reaction here will determine if Cardano breaks down further.

Breakdown Below $0.581 Could Open The Floodgates For ADA

Cardano’s price structure within the 4-hour candlestick chart shows lower highs and increasingly weaker bounces since March 26, reinforcing the bearish outlook. Interestingly, RLinda’s chart outlines a key trigger level at $0.581. A further breakdown is expected should ADA fail to hold the $0.581 support level, which has already served as a confluence area multiple times this cycle. 

The next key support lies at $0.5092, but this level is not expected to provide significant strength. If this zone is breached, the analyst warns of a potential plunge into what she terms a “zone of emptiness,” where buying pressure might become non-existent.

This emptiness of demand could send ADA plummeting further toward $0.4564, with an additional downside targeting $0.42 and potentially even $0.40. The analyst marks this area as the final destination for the current bearish phase unless broader market sentiment shifts dramatically. 

Speaking of broader market sentiment, the crypto market was recently rocked by a surge in volatility triggered by conflicting reports about a supposed 90-day U.S. tariff suspension, but the White House quickly denied the rumour. The back-and-forth was enough to push the Bitcoin price down to $74,620 again by 9:30 EDT. Cardano’s price also dropped to $0.54 during the same time window.

While ADA has since managed a mild recovery to the $0.5751 range, the bounce lacks conviction. The thin volume and absence of aggressive buying suggest the relief may be temporary and there are possibilities of more downside moves.

NEO and GAS recorded 13% and 30% daily gains as of press time, respectively, fueled by trading activity with Korean won (KRW) pairs on Upbit. 

According to market data, NEO posted $54.4 million in volume on its KRW pair, while GAS registered $134.6 million, ranking both assets among the day’s top movers across digital asset platforms.

The price hike follows a steep 44% decline for NEO between March 24 and April 2 and a 32% decrease for GAS in the same period, reversing the crash and surprising market observers.

Neo Bond program

The surge coincides with the recent launch of the Neo Bond program, a market stabilization initiative launched by the Neo Foundation. 

The Neo Bond program opened for participation on April 5 with a seven-day deposit window. The initiative allows NEO holders to lock their tokens for 30 days in return for a 50% annualized yield and a $5 price guarantee at maturity.

Structured as a fixed-term vault, the Neo Bond is designed to support market stability through voluntary token lockups and confidence incentives. Participation requires sending NEO from personal Neo N3 wallets, and funds are returned automatically to the same address after the term, including interest and any compensation if the token price falls below the $5 threshold.

The Neo Foundation pre-funded the bond with 1 million NEO in a multi-signature wallet to ensure liquidity and guarantee payout capability. The address manages all publicly verifiable bond funds. 

Korean retail flows

Market data from Upbit shows intense KRW trading activity in both NEO and GAS. The KRW-denominated demand contributed to a sharp uptick in price for both assets, although price action outside of Korean markets remained more muted. 

On April 9, the NEO/KRW pair accounted for over 60% of the token’s global trading volume, while GAS/KRW approached 70% of the total volume, indicating regional concentration.

The relative surge in GAS volume suggests either derivative hedging or retail interest fueled by the Neo Bond program’s promotional visibility.

While GAS is only used to pay fees for operations on the Neo blockchain, its price is highly correlated with NEO. On the Pearson Correlation Coefficient, over the 1-year timeframe, GAS shows a 0.94 positive correlation with NEO, rising to 0.96 in the 1-month timeframe.

The Pearson Correlation Coefficient estimates the relation between two variables, ranging from a total lack of correlation (-1) to a complete correlation (1).

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