Cardano (ADA) Drops 28% Amid Altcoin Panic, Key Support Zone Holds

Cardano (ADA) has experienced significant volatility and price swings, with the cryptocurrency market facing widespread panic as altcoins continue to struggle. Over the past few days, ADA has dropped more than 28% since last Thursday, contributing to the growing negative sentiment surrounding altcoins. As uncertainty grips the market, investors are closely monitoring whether Cardano can stabilize or if further declines are imminent.

Despite the bearish sentiment, there are indications that Cardano could be poised for a recovery rally. Top analyst Ali Martinez shared a technical analysis revealing that ADA’s key support zone lies between $0.80 and $0.66. Holding above this level has been crucial for setting up a market rebound. If ADA can maintain support within this range, it could pave the way for a strong recovery, potentially leading to a renewed push toward higher resistance levels.

With market conditions remaining fragile, the coming days will be pivotal for Cardano’s next move. Traders are watching whether ADA can hold key levels or if continued selling pressure will drive prices lower. A successful defense of support could mark the beginning of a recovery, but failure to hold may signal further downside risk.

Cardano has shown resilience compared to the broader market over the past week, holding key support levels despite ongoing selling pressure. While many altcoins have suffered significant declines, ADA has remained relatively stable. However, price action is still confined to a range that first began forming in November 2024, preventing a clear breakout in either direction.

If bulls can defend the current levels, ADA could soon attempt a push above multi-year highs, potentially leading to a strong recovery rally. Despite its recent stability, analysts remain cautious, noting that prices remain low and sentiment suggests that many investors are still fearful. The next few weeks will be crucial in determining whether Cardano can sustain its momentum or if further downside is ahead.

Martinez’s technical analysis highlights that, when looking at the bigger picture, Cardano’s key support zone lies between $0.80 and $0.66. He noted that holding above this critical range would be essential in determining ADA’s next major move. If ADA remains within this zone and starts to gain momentum, it could set the stage for a significant breakout, fueling a move toward higher resistance levels.

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