Can Cardano Bounce Back to $1? The Essential Price Point for ADA

Cardano (ADA)’s value persists in a sideways trend, maintaining its range over the last ten days, while sentiments online strengthen. Some analysts propose that a retest of the local resistance might be forthcoming if the cryptocurrency retains its vital support zone.

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Cardano Retains Key Range

Cardano has pulled back 40% from its two-month peak of $1.17, settling in the $0.7 range in recent weeks. ADA surged 80% on March 2 following US President Donald Trump’s announcement of a “Crypto Strategic Reserve,” which encompassed the cryptocurrency, elevating the token to monthly peaks.

Post its substantial surge, the altcoin descended to $0.9, maintaining this area through subsequent days. However, the March 6 executive order instituting a Strategic Bitcoin Reserve and a “Digital Asset Stockpile” caused ADA to drop below this critical level.

At that moment, the White House’s Crypto Czar, David Sacks, clarified that ADA and other altcoins listed were merely utilized as references for leading cryptocurrencies in the market.

Since then, Cardano has fluctuated sideways, oscillating between $0.68-$0.75. ADA fell to $0.64 during the market plummet on March 11 before recovering. In spite of the persistent price movement, online sentiment has been optimistic regarding ADA this week.

On Tuesday, the on-chain analytics firm Santiment highlighted that Cardano experienced highly favorable sentiment across social media. This bullish outlook was sparked by the Securities and Exchange Commission (SEC) categorizing ADA’s use case as “smart contracts for government services.”

The news “boosted bullishness to its peak in over four months,” the firm remarked. Furthermore, significant investors have also demonstrated positive sentiment towards Cardano, with Whales acquiring around 190 million ADA tokens within the last 48 hours.

ADA Breakout Or Breakdown Ahead?

ADA has been experiencing a downward trend since December 2024, when it reached its 3-year peak of $1.32. The February market retracements resulted in the cryptocurrency’s price dropping below several essential support zones, with the token fluctuating between the $0.60-$0.80 price bracket.

Analyst Sjuul from AltCryptoGems pointed out that ADA has “a uniquely unusual chart, primarily due to the strategic reserve announcement.” Consequently, Cardano’s most critical support level is set at $0.66, as breaching it could lead to monthly lows.

According to the analyst, “That level should be maintained; otherwise, this recent price behavior will lead to a distribution phase.” Previously, Sjuul asserted that Cardano’s chart indicated a Power of 3 in formation, suggesting that the cryptocurrency was entering its third phase.

This configuration segments the price cycle into three stages: accumulation, manipulation, and distribution. In the final phase, a significant price breakthrough occurs, with momentum developing in the opposite direction to the manipulation. Given this, if ADA loses the $0.66 threshold, the token may undergo a substantial price adjustment.

Meanwhile, a pseudonymous trader indicated that the altcoin demonstrates “a bullish reversal after emerging from a falling wedge pattern.” According to the post, Cardano could embark on a vigorous upward trend if it sustains its momentum.

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Nevertheless, ADA must “sustain the current support levels and exceed the local resistance in order to confirm further bullish momentum” towards the $1.22 objective.

Analyst Ali Martinez observed that ADA is trading within a right-angled descending wedge, with the upper trendline at $1.15. He proposed that a daily close above $1.15 would propel ADA’s price to the $2 level, not witnessed since 2021.

Featured Image from Unsplash.com, Chart from TradingView.com