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ADA's Precarious Perch: $0.8 Breach Could Spark Broad Correction

AInvestSaturday, Feb 1, 2025 5:21 pm ET
1min read

Cardano Price Analysis & Prediction: ADA Faces Broad Correction Risk if Key Support Breaks

Cardano's ADA token has been experiencing a significant correction in recent weeks, with the price trading near a crucial support level. Despite the losses, the mid-term bullish trajectory of ADA remains intact. However, a breakdown below the $0.8 level could trigger a broad correction, with the key target level being $0.4.

The current market structure of ADA is weak, with a steady reduction in price over the past few months. This suggests a strong bearish presence, and the selling pressure is likely to increase if the bears show strong commitment. A rebound from the crucial support level is the only condition for a bullish move at this point.

If the $0.8 level continues to provide support, we may see an upward movement with a double-bottom pattern. However, the bears are likely to have an upper hand in the near term. Breaking down the $0.86 support could cause a serious sell-off to $0.765 and $0.65 before reaching the key target level of $0.4.

On the other hand, if ADA continues to hold the $0.8 level well, we may see a bounce back to $0.988. Retaking January's $1.152 high should send us to the $1.32 resistance with a potential break up to $1.5.

Key Resistance Levels: $0.988, $1.152, $1.32

Key Support Levels: $0.86, $0.765, $0.69

Price: $0.93

Trend: Bearish

Volatility: Moderate

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.