In the past day, Cardano (ADA) has seen a 14% retrace amid the crypto market’s pullback. The cryptocurrency recently saw its price lose the $1 mark, descending below $0.90 on Monday morning. Despite the drop, some market watchers shared a positive outlook for ADA, asserting that a rebound to $1.30 could be around the corner.
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Cardano Holds Key Higher Timeframe Support
Cardano, alongside the rest of the market, ended the week with a Sunday bleeding, registering seven consecutive red candles yesterday afternoon. The market pullback continued Monday morning, with Bitcoin (BTC) losing the $100,000 support for the first time in over a week.
As the market correction persisted, ADA’s price lost the $0.90 support, hovering between the $0.85-$0.89 range before recovering. Almost two weeks ago, Cardano bounced from the $0.90 support to reclaim the $1 resistance.
During this jump, the cryptocurrency surged to its 2025 high but failed to break past the $1.18 resistance level, sending ADA into a downtrend. Since then, the altcoin has failed to turn the $1 resistance into support, hovering between $0.95-$1.02.
The recent drop sent Cardano to a two-week low price and back to its end-of-year range of $0.83-$0.95. Nonetheless, the cryptocurrency’s price remains above crucial levels, as some market watchers noted.
AMCrypto highlighted that after its 5% recovery from today’s low, ADA was back to its 2-day support level. To the analyst, there is “no need to panic” if Cardano holds the $0.80 support zone.
This zone was 2024’s Q1 high, and it has served as a key higher timeframe level, fueling the altcoin’s rally once it has been turned into support in 2021 and late 2024. AMCrypto noted that “For alts to retest major support levels during a bull run is a good sign.”
ADA To Reclaim $1 Soon?
Other analysts shared similar predictions, suggesting that Cardano’s run would be determined by its next price move. Carl Runefelt stated that “despite the market correction, ADA is still holding on to this massive bullish pennant.”
The analyst pointed out that ADA’s chart displays a 2-month bullish formation that targets $1.9 if it breaks out. However, he noted that the first target is the local top of $1.30. Runefelt explained that “if the support holds, we could see a bullish breakout at some point.”
Meanwhile, ADA trader Sebastian considers that Cardano needs to close the day above $0.95. He stated it “would be amazing for ADA if this last daily candle turns green” and closes within the symmetrical triangle.
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Previously, Sebastian noted that ADA’s “painful consolidation might soon be over,” as the cryptocurrency was “running out of space within this symmetrical triangle and might break out soon.”
To the trader, If Cardano gets “back in the chart,” then the recent breakdown will “be busted and will likely result in a pump to the upside.”
As of this writing, ADA is trading at $0.90, an 8% decline in the last 24 hours.
Featured Image from Unsplash.com, Chart from TradingView.com
