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Cardano (ADA) has been struggling to hold some crucial levels over the month, falling to multi-month lows over the weekend. As the cryptocurrency attempts to hold a key support area, some analysts believe this make-or-break retest will determine its next big move.
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Cardano To See More Bleeding
Cardano is recording a 4.5% daily increase after bouncing from the $0.51 area on Sunday. Notably, ADA was in a downtrend following its 3-year high of $1.32 in December 2024, which ended after the late April breakout and May bullish rally.
However, the cryptocurrency has struggled to hold its April-May range amid the June market pullback, losing the key $0.66 area ten days ago. Since then, Cardano has recorded seven consecutive red daily candles and fallen below the $0.60 support.
Sjuul from AltCryptoGems suggested that Cardano’s rally will be halted unless some ground is recovered. According to the analyst, the cryptocurrency’s multi-month price action “ended up being a classic distribution schematic” after losing the $0.66 support.
This would signal that ADA’s uptrend has ended and a potential downtrend is ahead. “As long as we don’t reclaim $0.66, just expect further downtrend from now on,” he asserted.
Meanwhile, market watcher Man of Bitcoin highlighted the cryptocurrency’s June downtrend, affirming that if the price remains below the descending trendline, downward pressure will persist.
He added that “One more low in wave iv is still possible,” hinting that a drop below the $0.50 could be on the horizon before the next wave up. Nonetheless, the analyst noted that “it should be a brief wick to the downside” as a “sustained break lower would weaken the bullish outlook.”
ADA Retest To Trigger Rally To $1?
Amid the ongoing global war tensions, ADA’s price retested the crucial $0.52 support on Sunday, hitting a four-month low of $0.51, before recovering and closing the week around the $0.54 mark.
Market watcher Rose Premium Signals noted that a weekly close around the crucial $0.56 level would continue the possible double-bottom setup forming on ADA’s chart.
The analyst added that a confirmed rebound from the $0.54-$0-56 area could send the price to the initial $0.99 target and set the stage for a climb toward the $1.20 and $1.50 resistances.
On the contrary, failing to hold this area could see Cardano lose its six-month price range and retrace to the $0.32 level. Meanwhile, Crypto Billion affirmed that Cardano appears to be forming a potential triple bottom structure, which could lead to a bullish reversal.
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As the cryptocurrency retested the $0.50-$0.52 area over the weekend, the analyst highlighted that this key range had been held twice before since the November breakout.
Additionally, he pointed out that ADA’s price appears to be trading within a multi-month falling wedge pattern, which suggests a breakout toward the $1 mark if the price climbs toward the upper boundary.
As of this writing, Cardano is trading at $0.54, a 15.6% decline in the weekly timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
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