Cardano (ADA) Examines Its Traditional Support and What It Means

crypthub

about 5 hours ago

Current Market Pressure

Cardano is approaching a crucial price zone that has shaped its market structure for years. Sustained selling could threaten this support, especially amid broader crypto weakness. The token opened the week down about 1.33% as Bitcoin briefly slipped below $65,000. This bearish backdrop fuels concern over ADA’s near‑term stability.

Historical $0.24 Support

Traders focus on the $0.24 area, a three‑year structural demand zone that has repeatedly halted declines. It held during the previous bear market and rebounded after a dip to $0.22 in mid‑2023. That bounce sparked a surge to a $1.32 peak, a sixfold gain from the base. Repeated testing now raises doubts about its lasting strength.

Recent Tests and Breakdown Risk

In early February, ADA briefly fell toward $0.22 before buyers intervened, prompting mixed views on a bottom forming. Analyst Mercury warns the level may not hold if bearish sentiment persists. Without fresh buying pressure, the support could crumble under continued stress. The risk of a breakdown is becoming increasingly plausible.

Potential Downside Targets

If $0.24 fails, the next consolidation zone lies near $0.17, followed by a psychological $0.10 level. A drop to $0.10 would represent a loss of over 60% from current prices. Further declines would depend on overall market dynamics and liquidity. Such a scenario underscores the heightened risk of a confirmed support breach.