While volatility is increasing again in the cryptocurrency markets, Cardano (ADA) price movements have entered the radar of investors. After a long period of sharp declines, ADA is hovering close to a historically important support zone. Market participants are carefully watching whether this level can be maintained in the current cycle and whether this will be the beginning of a new trend for Cardano.
Technical Outlook After a Prolonged Decline in ADA
The ADA price has lost approximately 93 percent of its value since the previous macro peak. This decline is not unique to Cardano; It is seen as a reflection of the long-term correction process experienced in the overall crypto market. ADA, which reached its all-time high of approximately $ 3.10 in 2021, recorded an increase of over 1,300 percent during this rally. However, the selling pressure following the peak gradually pulled the price down.
In the last six months, ADA has decreased by approximately 78 percent from the level of 1 dollar. Despite this, the multi-year support zone above $0.24 managed to hold for a long time. Recent price movements have brought ADA closer to deeper demand areas. Technical analysis data indicates that the price is moving within an “accumulation zone” in the higher time frame. This situation is interpreted by some investors as the possibility of long-term recovery is still on the table.
Demand Zones, Historical Cycles and Market Prospects
According to analysts, the main demand zone is between $0.18 and $0.13. This region stands out as an area where buyers showed great interest in the past and liquidity was absorbed. It is considered critical for weekly closings to remain above $0.13 to preserve the current technical structure. A close below this level may invalidate the current scenario.
Some traders implementing higher-risk strategies consider the $0.0755 area as a last line of defense. This level is used as a reference to limit downside risk rather than the trend direction. On the other hand, the market sees the recovery of $0.4374 as an important threshold for reconfirmation of the trend. In a possible bull expansion, targets such as $ 1.20, $ 3 and $ 5 are mentioned; However, all of these scenarios depend on preserving structural support.
This technical picture in Cardano is also parallel to other major projects in the market. For example, on the Ethereum front, on-chain data attracts attention that long-term investors are re-accumulating. Additionally, network updates in alternative layer-1 projects such as Solana are gradually increasing the overall market risk appetite. These developments may provide indirect support for the broader ecosystem that includes Cardano.
As a general assessment, the region where the ADA is located contains both risks and opportunities. While technically meaningful levels are being tested for long-term investors, uncertainty prevails in the short term. The general direction of the market and macro liquidity conditions in the coming weeks will likely determine how Cardano reacts from this critical support.
