Cardano’s ADA Price Prediction: Potential Drop to $0.41 If April’s Lowest Levels are Broken

Cardano is currently facing a critical juncture as it tests a key support level near $0.50. The cryptocurrency’s recent attempt to rally has fallen short, and it is now showing signs of weakness as it heads back towards previous lows. With momentum turning bearish and sentiment growing cautious, Cardano’s price action is under scrutiny as important levels come into play.

Trading around $0.55, Cardano is down by 5.83% in the last 24 hours. The cryptocurrency is now at a crucial level, with $0.49 representing a significant point of control and the highest volume node within its current trading range. This level has historically delineated bullish continuation from a full breakdown, making it a pivotal structural pivot for Cardano’s price action.

If Cardano manages to hold above the $0.49 support level, the upside target could be around $1.19, aligning with previous highs and liquidity gaps. However, a drop below this critical level, especially with increased volume, could lead to a swift decline towards the $0.30 region, where previous capitulation zones are located.

Further exacerbating Cardano’s short-term outlook is its struggle to break above a descending trendline. As long as the cryptocurrency remains suppressed below this trendline, there is a bias towards further downside movement. Technical analysis suggests a possible wave structure pointing towards a low in the $0.510 to $0.505 range, within a key demand zone.

Despite broader market declines, Cardano has slipped to the 8th position in Grayscale’s weekly returns snapshot, registering a -9.4% decline. This underperformance aligns with the technical signals on the chart, indicating that ADA is struggling to surpass the $0.50 zone and facing downward pressure.

Cardano’s recent bounce attempt has faltered, raising concerns about a potential retest of the April lows. With heavy price action and a lack of follow-through, Cardano remains vulnerable to further downside movements. A break below April’s low could pave the way for a more significant drop towards the $0.41 area unless there is a sharp bounce and a reclaiming of key trendlines.

In conclusion, Cardano is approaching a critical point where a failure to rally could lead to a significant dip in price. Bulls need to step in decisively to prevent further losses and reclaim key levels to shift the momentum in favor of a bullish reversal. Until then, Cardano’s price remains under pressure, with the potential for a retest of critical support levels looming on the horizon.