Cardano’s ADA has experienced significant volatility over the past week, with broader market turbulence playing a role in its price action. A notable factor contributing to the downturn was China’s DeepSeek, which triggered a risk-off sentiment across the crypto market. As a result, ADA dropped sharply from a high of $0.96 to a low of $0.86, marking a 10% loss. Despite this pullback, there is an optimistic outlook for the asset, with one analyst suggesting that ADA could be gearing up for a notable bounce.
According to technical analysis, Cardano’s ADA is at a key juncture for a potential rebound. Over the past several weeks, the $0.85 to $0.90 price zone has acted as significant support for ADA. Historically, this range has provided a strong foundation for price reversals, with ADA bouncing off this region multiple times. Based on these historical trends, the analyst predicts that ADA may soon stage a recovery and aim for the psychological $1 level.
At the time of writing, ADA has already shown signs of a minor recovery, trading around $0.93. The analyst suggests that if the support zone continues to hold, the token could see a further 7.5% upside in the short term. This movement would bring ADA closer to the $1 mark, offering an important milestone for the asset.
Further supporting the bullish outlook is the technical setup surrounding ADA. The price trend indicates that ADA may be forming a double-bottom pattern, which is often a precursor to upward price action. This pattern suggests that the current downtrend could be coming to an end, setting the stage for a price reversal.
Additionally, ADA’s recovery could gain momentum from growing institutional interest. Recently, Cardano has been included in the filings for leveraged exchange-traded funds (ETFs), alongside other prominent cryptocurrencies. This could bring more exposure and liquidity to ADA, which would likely provide additional support for the token’s price rebound.
Veteran traders have also weighed in on ADA’s potential. Some suggest that the token has broken out of a multi-year double-bottom formation, which could signal the beginning of a new bullish cycle for Cardano. If ADA continues to build on this breakout, it could be poised for significant gains.
While the short-term outlook for ADA is bullish, it must contend with some key challenges. The upcoming economic releases, such as interest rate decisions from the U.S. Federal Reserve and the European Central Bank (ECB), will play a critical role in determining broader market sentiment. These decisions could impact ADA’s price, as they are likely to influence investor sentiment across the cryptocurrency and traditional financial markets.
Should ADA maintain its support in the $0.85 to $0.90 range, the recovery rally may continue toward $1. However, any negative market reactions to the economic updates could lead to increased volatility, and ADA could face additional price fluctuations.
In summary, Cardano’s ADA appears well-positioned for a potential recovery, provided it holds support in the $0.85 to $0.90 range. If ADA can push past this hurdle, the token has the potential to reach the important $1 psychological resistance. While broader market dynamics and economic factors will likely play a significant role in ADA’s performance, the technical indicators suggest that ADA could be on the verge of a strong bullish move. As always, traders and investors should stay informed of broader market trends and key economic developments to assess ADA’s future prospects.
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