Cardano's $0.72 Support Test Could Trigger 16.22% Upside

Cardano, the native token of the proof-of-stake blockchain, is currently testing critical support at $0.72. This level is crucial as a misstep could send the token tumbling toward levels not seen since before last year’s rebound. The token has struggled to breach the $1.20 level for nearly three years, having last reached an all-time high of $3.10 in the summer of 2021. Since its launch in September 2017 by Ethereum co-founder Charles Hoskinson, Cardano has maintained a strong position among the top 10 cryptocurrencies, with a market capitalization exceeding $25 billion. However, its inability to reclaim the $1.00 threshold has raised concerns among traders about a potential slide into bearish territory.

Despite the challenges, popular crypto analyst Ali Martinez remains optimistic. He suggests that if $ADA holds above the $0.72 level, it could trigger a rebound toward $0.92 in the near term. Another analysis by Bull Spot Bear points to $ADA’s lagging performance relative to the M2 Global Liquidity Index, implying that the token could surge by more than 50% to around $1.80 if it aligns with macro liquidity trends. On-chain data from Santiment further supports this bullish narrative, showing that over 80 million $ADA were accumulated in a short span, following a previous 400 million ADA acquisition just two weeks prior. This accumulation by large holders suggests growing institutional or whale-level confidence.

Trading volume has also seen an uptick, with more than $1.14 billion worth of $ADA changing hands, an encouraging sign of continued market engagement. Futures market sentiment appears similarly bullish, with derivatives data showing positive funding rates for $ADA/$USDT, $ADA/$USDC, and $ADA/$USD trading pairs across major platforms. A positive funding rate indicates that long traders are paying shorts, suggesting expectations of price increases. $ADA is currently trading within a clearly defined ascending channel on the daily timeframe. After a strong rally that saw $ADA approach the $0.90 region, the token has entered a corrective phase, now pulling back to the lower boundary of the channel around $0.72. This level coincides with dynamic trendline support, suggesting a potential rebound zone. The 16.22% upside projection from current levels targets the $0.85–$0.87 area, which sits just beneath a major resistance band spanning from $0.88 to $0.90. A successful breakout above that range would open the door to retest the higher resistance zone between $1.095 and $1.1499, which was last visited in March and remains a psychologically major level for bulls. The price structure also shows prior consolidation in the $0.58 to $0.66 range, which now acts as a solid demand zone should the channel support fail. If bulls can defend the lower channel and reclaim short-term momentum, $ADA could begin a fresh leg up, targeting $0.85 first and potentially $1.10. However, a confirmed breakdown below $0.70 would invalidate this bullish setup and may drag the price back into the previous consolidation zone.