Support level at risk: Will Cardano rebound or decline further?
According to data from Brave New Coin, Cardano's price has fallen back to the critical $0.24 support level for the first time in weeks, a level that was once a significant turning point. Analysts point out that the price fluctuations around $0.243 are forming a tense balance between resistance and support, with the upper limit set close to $0.53, while $1.18 is considered a historically significant reversal area. Currently, ADA is at the lower end of this range.
If buyers intervene at this time, there is a possibility of a recovery to the $0.53 range. However, if the $0.24 support level is breached, analysts warn that new downward momentum could be triggered, leading to further declines for Cardano.
On-chain signals: User and transaction volume reach record growth
Blockchain data shows a significant increase in activity on the Cardano network. According to data released by TheCryptoBasic, the number of daily active users has surged over 1400%, approaching 12,000 unique addresses. This dramatic increase in activity marks a renewed interest in the ecosystem after a period of stagnation.
Transaction volume has also risen sharply, with the total number of transactions increasing to nearly 120,000, quadrupling from previous levels. Observers believe that this discrepancy between on-chain growth and price fluctuations is unlikely to last long.
Momentum indicators show signs of reversal
Technical analysis indicates positive momentum across multiple time frames. Over the longer time frame, the Relative Strength Index (RSI) has begun to rise, suggesting that the momentum loss accompanying the recent price drop may have ended. Analyst Sssebi emphasizes that such signals typically appear when a new market bottom is forming.
In shorter time frames, ADA has closed above its 7-day, 30-day, and 99-day moving averages. Analyst TapTools interprets this short-term rebound as an initial signal of buyer strength. While these technical improvements do not guarantee a complete bullish reversal, they indicate that downward pressure may be weakening.
The simultaneous emergence of positive signals in the short term suggests that Cardano may be entering an accumulation phase, potentially replacing the current downtrend.
Market outlook: What’s next for Cardano’s price?
Market sentiment is gradually turning optimistic. Predictions from Google Gemini AI and updates from TapTools suggest that if the current momentum continues, Cardano's price could reach $0.55 in the medium term. In a strong upward trend, targets of $0.90 or even $1.60 may emerge.
Short-term scenario: Bulls vs. Bears
Looking ahead, Cardano faces two possible scenarios in the short term. If the price stabilizes above $0.24 and gains new upward momentum, it may move towards the $0.30-$0.35 range, with $0.50 and higher levels potentially appearing later. Analysts emphasize that strong on-chain data remains a key driving force supporting a potential rebound.