- Cardano faces potential downside with key support levels at $0.785, $0.74, and $0.62 if bearish pressure continues.
- A rebound to $0.87 could signal a bullish reversal and shift market sentiment positively.
Cardano (ADA) is under pressure after a recent rejection from a critical trendline, and market watchers are keeping a close eye on its next moves. The cryptocurrency has experienced a 3% drop in the past 24 hours, reflecting broader weakness across the crypto market.
Three Key Downside Targets for Cardano
Market analyst Dan Gambardello outlined three potential targets if Cardano continues its bearish trend. The first key support lies at the 0.786 Fibonacci level, between $0.810 and $0.785. Currently trading near this zone, ADA’s reaction here could indicate whether a rebound or further decline is on the horizon.
Should this level fail to hold, the second target comes into play: the 200-day moving average at $0.74. A drop to this level would represent an additional 9.4% decline from ADA’s current price of $0.817. Gambardello’s final downside target lies near $0.62, in the mid-$0.60s. While he hopes this scenario does not occur, it is technically plausible in a continued price breakdown.
Upside Potential Still on the Table
Despite the bearish outlook, Gambardello also acknowledged that Cardano could rebound. A recovery from the current Fibonacci support could set the stage for a retest of the lower trendline where ADA was previously rejected. Such a move would determine whether a bullish reversal is possible or if resistance will maintain a sideways trend.
A reclaim of the $0.87 level would be particularly significant. According to Gambardello, surpassing this point could signal the start of a bullish reversal and open the door for higher price levels in the near term. Traders are advised to remain cautious, as the market shows clear signs of downward pressure, but the potential for a rebound remains if ADA holds its current support zones.
Cardano’s near-term trajectory hinges on its interaction with key support levels. While the altcoin faces possible declines toward $0.785, $0.74, and $0.62, a rebound to $0.87 could shift sentiment positively. Investors should monitor these critical levels to gauge whether the market confirms further bearish pressure or sets up a bullish reversal.
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