Cardano (ADA) rebounds after crash, but bearish risks still loom

Cardano ADA staged a modest recovery after falling to the $0.14 level, but the broader trend remains under pressure as traders continue to assess the impact of a sharp market correction and a recent wallet security incident within the ecosystem.

At the time of writing, ADA was trading at around $0.1483, up about 1% over the past 24 hours after touching an intraday low of $0.14.

The rebound has helped the token recover from its session low, although it remains significantly below recent highs.

Over the past seven days, ADA has declined 11%, while losses stand at 38.6% over the last 30 days and 40.9% over the past three months.

On a yearly basis, the cryptocurrency is down 74.4%.

SecondFi exploit adds pressure to Cardano sentiment

One of the major developments weighing on sentiment this week was the disclosure of a security breach involving SecondFi, a Cardano-based wallet provider.

The company confirmed that attackers exploited a vulnerability in its proprietary wallet generation software during three separate attacks.

According to SecondFi, around 16 million ADA, valued at approximately $2.4 million, was stolen from 374 wallets before the issue was identified and contained.

The company said it has already patched the vulnerability for wallets that were not affected.

As an emergency measure, it also transferred approximately 129 million ADA to an independent third-party custodian to prevent further unauthorised access while investigations continue.

Notably, the incident is considered a software-level vulnerability rather than a weakness in the Cardano blockchain itself.

The flaw was linked to SecondFi's wallet generation process, meaning the network's consensus mechanism was not compromised.

But even so, the event has added another layer of uncertainty at a time when ADA is already trading under sustained selling pressure.

Cardano price forecast

Cardano's short-term outlook remains fragile despite the rebound from $0.14.

Market analysis shows ADA remains below its major daily exponential moving averages (EMAs), while the overall technical bias is still bearish.

At the same time, the 14-day Relative Strength Index (RSI) has entered oversold territory, a condition that can sometimes precede short-term relief rallies after extended selling pressure.

While the recovery has lifted ADA back to around $0.1483, the token is still trading below the key $0.1572 level that previously acted as support.

If selling pressure resumes, analysts are watching $0.136 as the next major support zone, followed by $0.127 if that level fails to hold.

A move below those levels would indicate that the broader downtrend remains intact and could extend the recent losses.

On the upside, a sustained recovery above $0.1572 would be the first sign that buyers are regaining control.

Beyond that, technical resistance is expected around $0.17, where previous price action suggests sellers could re-enter the market.

A successful break above that area would improve the near-term outlook, although ADA would still need to overcome additional resistance before confirming a broader trend reversal.