Over the last 24 hours, Cardano (ADA) experienced a significant 14% decline as part of the broader cryptocurrency market’s pullback. The digital asset recently fell below the $1 threshold, dropping to under $0.90 on Monday morning. Despite this downturn, some analysts remain optimistic about ADA’s future, suggesting a potential bounce back to $1.30 may be on the horizon.
Cardano Maintains Critical Support Levels
Along with the overall market trend, Cardano closed out the week with a downward trajectory on Sunday, marking seven consecutive red candles by the afternoon. This negative momentum continued into Monday morning, with Bitcoin (BTC) breaking below the $100,000 support level for the first time in over a week.
As the market correction persisted, ADA’s price slipped below the $0.90 support range, fluctuating between $0.85-$0.89 before showing signs of recovery. Just two weeks ago, Cardano bounced back from the $0.90 level and reclaimed the $1 mark.
Despite reaching a 2025 high during this surge, Cardano failed to surpass the $1.18 resistance level, leading to a downward trend. Since then, the cryptocurrency has struggled to establish $1 as a solid support level, trading between $0.95-$1.02.
Following the recent drop, Cardano revisited a two-week low price range, returning to the end-of-year price range of $0.83-$0.95. However, ADA’s price remains above key levels, according to some market observers.
AMCrypto emphasized that ADA had rebounded by 5% from the day’s low, returning to a crucial 2-day support level. The analyst expressed confidence, stating that as long as Cardano maintains the $0.80 support zone, there is no need to panic.
This support zone acted as a significant level in Q1 of 2024 and has historically fueled Cardano’s rally once it becomes a support level. AMCrypto highlighted that “during a bull run, retesting major support levels is a positive indicator for altcoins.”
Potential Rebound to $1 for ADA?
Various analysts echoed similar sentiments, suggesting that Cardano’s future performance hinges on its next price movement. Analyst Carl Runefelt noted that “despite the market correction, ADA is still within a large bullish pennant formation.”
Runefelt observed a 2-month bullish pattern on ADA’s chart targeting $1.90 if a breakout occurs, with an initial target set at $1.30. He explained that “a bullish breakout could occur if the current support level holds.”
Meanwhile, trader Sebastian believes that Cardano needs to close above $0.95 for a positive momentum. He expressed optimism, stating that it would be beneficial for ADA if the current candle closes within the symmetrical triangle formation.
Sebastian previously mentioned that ADA’s consolidation phase may soon end, as the cryptocurrency appears poised for a breakout from the symmetrical triangle pattern. He suggested that reentering this pattern could lead to an upward price movement.
At the time of writing, ADA is trading at $0.90, representing an 8% decline over the past 24 hours.
