Key Insights:
- ADA’s critical $0.63 support could trigger a steep slide to $0.54 if broken.
- Momentum suggests a possible bullish breakout targeting $0.73 soon.
- ADA faces volatile moves as bulls and bears clash at crucial technical levels.
Cardano (ADA) is trading near a critical support level. At press time, ADA held just above $0.63. This level has served as a key defensive zone in recent months. Analysts remain split—some expect a move toward $0.54, while others see a breakout forming toward $0.73.
Descending Channel Signals Risk of Breakdown to $0.54
Technical analyst Ali Martinez identified a descending channel that has shaped Cardano price since late 2023. He noted a clear structure of lower highs and lower lows, reflecting continued bearish pressure. The $0.63 support level traded at the center of his forecast, as it has consistently absorbed downward pressure during recent corrections.
According to Ali Martinez, a breakdown below $0.63 would confirm the bearish setup and open the path toward $0.54. That level aligns with the channel’s lower boundary, reinforcing its technical relevance. With Cardano price unable to break above the descending trendline, the channel continues to dictate the dominant market direction.
Long-Term Stagnation Weighs on Cardano’s Bullish Hopes
Furthermore, Jesse Olson has provided a forecast of a long-term scenario in support of a bearish outlook. He highlighted the fact that ADA price has been caught in a wider trading range of $0.55 to $0.60 for over 1,500 days.
Despite the application of several protocols and fast-growing networks, the price has not responded effectively enough.
According to Olson, the general investor sentiment remained subdued, given that price could not stay above critical resistance levels. Cardano price has come close to $1.00 several times, then followed with a steep drop and continuous bear pressure. This has given the altcoin a rather low-performance profile, especially in comparison to other major altcoins.
Momentum Builds for Cardano Price Breakout Toward $0.73
On the bullish side, Trader Tardigrade shared a view suggesting higher lows and an emerging bullish structure. ADA is attempting to climb out of the mid-$0.60s and approach $0.73.
If the current momentum persists, Tardigrade sets $0.73 as the next major level to watch. The level certainly provided a previous support and a break above the level would have been an indication of a change in trend. Volume, although remaining subdued, is also gradually rising in tandem to price movement possibly indicating accumulation.
This bullish setup could get broader technical affirmation if ADA price surges through $0.73 with volume. In his analysis, Tardigrade relied on the recent swing lows that remain the foundation of the rally attempt. A further rise could break this bearish channel through which the price has been contained since the beginning of the last year.
$0.6422 Support Key for Cardano Price and Short-Term Bulls
The $0.6422 level, first identified by Tardigrade, stood out as a tactical support zone. According to the analyst, the $0.6422 has been acting as the recent swing low level and is a critical entry level for buyers. At constant price and volume, the area was significantly oversold during ADA’s last pullback, enhancing its importance.
Notably, if ADA price rises and sustains above $0.6422, then it will form a higher low formation and confirm that the bulls are in charge. A bounce from this level would imply sustained demand and potentially lead to a new attempt at rising toward $0.73.
However, if Cardano price falls below $0.6422, the uptrend may be short-lived again. Such a move would raise the likelihood of a retest of the $0.6 level, and if breached, the bearish channel projection toward $0.54 would come into play.
Disclaimer
This article is for informational purposes only. Crypto investment involves inherent risks due to the volatility in price. Readers should conduct their research before making any investment decision. Also, you can consult a crypto expert before investing in cryptocurrencies.
