#TradingAnalysis101
Cardano (ADA) at a Crossroads: Critical Support and Resistance Levels in Focus
Cardano (ADA) is facing a pivotal moment, with traders closely watching key support levels to avoid a potential 50% drop. Despite solid fundamentals, the price action tells a different story.
ADA must hold the $0.65–$0.80 range to prevent deeper losses. A break below $0.58 could trigger a sharp decline toward $0.40. However, a recovery past $0.75 could flip momentum bullish.
Currently, ADA trades around $0.7263, down 0.79% in the past 24 hours. Earlier, it suffered a 15.53% intraday drop, plunging from $0.7738 to $0.6536 before rebounding. Analyst Ali Martinez warns that losing the $0.80–$0.60 range could intensify the sell-off. However, a sustained break above $0.75–$0.80 might open the door to a potential run toward $2.00.
Technical Analysis: Bears in Control, But a Reversal Is Possible
ADA remains trapped in a downtrend, struggling to reclaim $0.75 and $1.00. If sellers push it below $0.58, a further collapse to $0.40 becomes likely—a steep 50% drop from recent highs.
Key support sits at $0.7100—losing this could send prices down to $0.6600 and lower. On-chain data reveals a 94% liquidation imbalance, indicating strong selling pressure with limited buy-side support.
Indicators show mixed signals:
RSI at 41.98 reflects weak momentum.
Whale accumulation is fading, suggesting a lack of big-money interest.
CMF at -0.03 signals weak buying pressure.
MACD recently flashed a golden cross, hinting at a potential trend shift.
What’s Next for ADA?
Cardano is at a crucial turning point. A break above $0.75 and holding $0.80 could flip momentum bullish, pushing prices toward $0.90–$1.00. However, failure to reclaim these levels could invite another leg down.
If ADA falls below $0.65 and $0.58, the next stop is $0.40. But if bulls step in and push ADA past $0.75, a sentiment shift could set the stage for a recovery.