As the cryptocurrency market continues to grapple with uncertainty, Cardano (ADA) is showing signs of resilience, holding steady around the $0.60 mark. Recently dipping from $0.6296, Cardano is now trading at $0.6724. With a potential morning star pattern forming and an intraday recovery, many are wondering if Cardano will break through the $0.73 resistance level and potentially surge toward the $0.92 mark.
Cardano’s Price Action: Key Support and Resistance Levels
On the daily chart, Cardano’s recent price trend has faced challenges, particularly as it failed to surpass the 200-day Exponential Moving Average (EMA). This struggle led to three consecutive bearish candles and a 10% decline over the past weekend. However, the price bounced back quickly, forming a Doji candle at the $0.60 level, which coincides with the 50% Fibonacci retracement — a critical support area for ADA.
Currently, Cardano appears to be forming a bullish turnaround, with an intraday recovery and a bullish candle suggesting that a retest of the short-term resistance at the 61.80% Fibonacci level is likely. The 200-day EMA is also nearing this resistance level, which could serve as a decisive point for the next price movement.
Analyst’s Caution: Potential Breakdown Ahead?
Despite the optimism, crypto analyst Ali Martinez warns of a significant downside risk. He points to the $0.70 to $0.80 range as a crucial support zone. If Cardano fails to reclaim this level soon, Martinez suggests the price could fall further, potentially reaching the $0.31 to $0.24 range based on past declines.
#Cardano $ADA is breaking below a key support level. If it doesn’t reclaim it soon, the next move could be significant. pic.twitter.com/ZHP4D3koAp
— Ali (@ali_charts) March 31, 2025
Price Targets and Outlook
If Cardano successfully tests the 61.80% Fibonacci level at $0.73, the potential upside could be 8.52%. A breakout could push the price to the next target of $0.93. However, if the price closes below the 50% Fibonacci level, a potential downside risk of nearly 20% could lead to a test of the support trendline around $0.53.
Also Read: TRON (TRX) Surges Toward Cardano (ADA) in Market Cap—Can It Overtake?
As Cardano navigates this critical phase, all eyes are on its ability to break resistance or face further challenges.
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.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
