Cardano, at Risk of Falling to $0.2...Chart 'Wobbly' Amid Governance Battle

▲ Cardano (ADA)

Cardano (ADA) is facing both governance conflicts and bearish chart signals, leading to warnings that it could fall to $0.20 if it fails to defend the $0.24 level.

According to cryptocurrency specialized media CoinGape on May 26 (local time), Cardano is projected to potentially drop to $0.21 amidst its governance crisis. CoinGape analyzed that a head-and-shoulders pattern appeared on the daily chart, and if this structure completes, the price of Cardano could fall to $0.20.

The controversy related to the Cardano Foundation stemmed from nine financial proposals submitted in April. Six proposals, including one to increase Cardano's monthly transaction volume to 27 million by 2030 through the Leios upgrade, were passed. However, three proposals, namely Pogun, Blockfrost, and Layer-2 Scaling, failed to pass. CoinGape reported that the three rejected proposals fueled internal community conflict and put pressure on Cardano's price.

Community member Jason Appleton stated, “Rejecting financial proposals without a valid alternative for what is needed can be like refusing a smoker's heart transplant without preparing an athlete's heart.” Cardano founder Charles Hoskinson also directly engaged in the governance discussion, stating, “I want to invite all of you, the Pentad, to have a real conversation about the future of governance and how we formalize adjustments going forward.”

From a technical analysis perspective, the key price level is $0.24. CoinGape explained that a head-and-shoulders pattern has formed on Cardano's daily chart, and based on the head's height of 16%, if it falls below $0.24, an additional 16% decline could lead it to $0.20. However, it added that the $0.24 support level has been maintained since May 22, and if buying pressure holds this level, a drop to $0.20 could be avoided.

The Relative Strength Index (RSI) was presented at 39. CoinGape analyzed that this figure indicates bearish sentiment and suggests that buyers are likely to observe. The RSI line is also making lower lows and declining, which was mentioned as a signal increasing the risk of a fall to $0.20. While Leios is scheduled to enter the testnet in June 2026, the question of whether Cardano can defend the $0.24 support level has emerged as a key variable for its short-term trend amidst technical bearish signals and governance conflicts.

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