- Cardano is testing a key support zone that could determine its next move after a recent pullback.
- Holding above $0.1604 may open the door to $0.1744, while a breakdown could send ADA toward $0.1578.
Cardano (ADA) is approaching a critical technical level after a recent pullback erased part of its latest gains. ADA is now testing a major support zone that could decide whether buyers regain control or sellers push prices lower in the coming sessions.
After successfully reaching previous upside targets, traders are watching closely to see if ADA can defend its current structure. A successful retest may pave the way for another rally, while a breakdown could trigger further losses.
Cardano Holds Above Crucial Support
At the time of writing, Cardano trades at $0.1666, down 4.24% over the past 24 hours. Despite the decline, ADA remains above an important support area between $0.1653 and $0.1631.
This zone aligns with both a fair value gap and a rising trendline that has supported the price several times during the current uptrend. Such technical confluence often attracts buyers looking to defend the trend.
If ADA remains above this area, analysts expect the next upside targets to be $0.1744, followed by $0.1807.
A Break Below $0.1604 Could Shift the Trend
While the technical setup remains constructive, the bullish outlook depends on ADA staying above $0.1604 on a confirmed candle close.
A close below that level would invalidate the current ascending trendline and increase the likelihood of a decline toward $0.1578. If selling pressure continues, the next support sits around $0.1553.
For now, traders are waiting for confirmation rather than reacting to intraday price swings.
Long Liquidations Dominate the Market
Recent derivatives data shows that long traders have absorbed most of the market losses during the latest correction.
During the last 24 hours, Cardano recorded approximately $765,660 in liquidations. Long positions accounted for about $736,470, while short liquidations totaled only $29,180.
However, the picture changed over the past hour, when only short positions were liquidated. This suggests that some traders who expected a deeper decline were caught as ADA stabilized near support.
The shift indicates that bearish momentum may be slowing, although stronger buying activity is still needed to confirm a recovery.
Bitcoin Remains an Important Factor
Although Cardano’s current setup is based on its own technical structure, Bitcoin remains an important factor. ADA has historically shown a positive correlation with Bitcoin, meaning major moves in BTC often influence Cardano’s short-term price action.
If Bitcoin remains stable or continues higher, buyers could defend the $0.1653-$0.1631 support zone. That would keep the bullish structure intact and increase the chances of a move toward $0.1744, followed by $0.1807.
However, if Bitcoin experiences a deeper pullback, selling pressure could push ADA below $0.1604. A confirmed close beneath that level would invalidate the current bullish setup and expose Cardano to $0.1578 and $0.1553.
Cardano Price Outlook
Cardano is at an important technical crossroads. The ascending trendline has held through several tests, and buyers have previously managed to push the price to higher highs.
Now, all eyes are on the $0.1653-$0.1631 support zone. Holding above this area would keep the bullish structure intact and strengthen the case for another move higher. A confirmed break below $0.1604, however, would shift the focus toward lower support levels.
The next few trading sessions are likely to determine whether Cardano resumes its upward trend or enters a deeper correction.
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