Last week, Cardano (ADA) received a major boost when former U.S. President Donald Trump included it among the five assets in his strategic crypto reserve. The news initially fueled optimism for ADA’s price, triggering a brief rally. However, that momentum has since faded, and ADA now faces the risk of breaking down from a crucial long-term support level.
Adding to the drama, Cardano’s founder, Charles Hoskinson, was notably absent from the White House Crypto Summit, raising eyebrows within the crypto community. Despite these developments, ADA’s technical indicators suggest a precarious outlook. Will the altcoin stage a comeback, or are new lows inevitable?
ADA Returns to Critical Support
ADA’s weekly chart shows troubling signs for bulls. The cryptocurrency has formed its first lower high this cycle, peaking at $1.32 in December 2024 and then falling to a lower high of $1.19 in February 2025. This downward movement was reinforced by a bearish candlestick, intensifying concerns about ADA’s trajectory.
Currently, ADA trades within a key $0.75 horizontal support zone, a level that previously served as resistance for over two years. Whether ADA can sustain this support or break below it will likely determine its medium-term trend.
Technical indicators lean bearish. The Relative Strength Index (RSI) has dipped below 50, while the Moving Average Convergence/Divergence (MACD) has made a bearish cross—both signals hinting at further downside potential.
Failed Breakout and Bearish Outlook
ADA saw a brief rally on March 3 following Trump’s crypto reserve announcement. Bullish divergences in the RSI and MACD initially suggested strength. However, ADA failed to break past the $1.15 resistance, forming a deviation and a lower high. This rejection led to a retracement, effectively invalidating its previous breakout.
According to wave analysis, ADA appears to be in wave C of an A-B-C correction. If waves A and C mirror each other in length, ADA could fall to $0.38, a scenario that would confirm a long-term bearish trend.
Is a Breakdown Inevitable?
Unless ADA can reclaim key resistance levels, particularly $1.15, its outlook remains bearish. A breakdown below $0.75 would reinforce this view, likely triggering further declines. While a short-term bounce is possible, ADA’s broader trend suggests new lows may be on the horizon.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Cardano Price Prediction 2025-2030: Can ADA Hit $10?
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