ADA Nears Critical Support: Will Cardano Crash or Bounce Back?

Cardano, the cryptocurrency known for its innovative blockchain platform, has been experiencing a downward trend in recent days. As of February 2, 2025, ADA, the native token of Cardano, is trading at $0.88, nearing a critical support level. The question on traders' minds is whether ADA will crash further or bounce back due to its current technical formation.

ADA's price has been on a steady decline, now eyeing the strong support at $0.84. This bearish movement aligns with Bitcoin's latest price dip, causing the entire crypto market cap to shrink by 3.4% in just 24 hours. If selling pressure persists, Cardano could be at risk of deeper losses.

The $0.84 level is a crucial turning point. If ADA breaks below this support, it could trigger a further decline toward $0.70 and even $0.60. However, technical indicators suggest a possible bullish flag formation. If this pattern holds, ADA could rebound from $0.84 and rally back toward $1.10.

For now, all eyes are on ADA's price action around $0.84. A confirmed breakdown could lead to a bearish continuation, while a strong bounce could spark a fresh rally. Traders should watch for Bitcoin's next move, as it will likely influence ADA's trajectory.