Cardano Price Forecast: Will ADA Extend Recovery Above $0.38–$0.40?
Cardano’s price movement has been of interest lately, as it hovers around the crucial $0.39 zone. This area has gained significance due to extensive consolidation and corrective phases. While the short-term trading remains in a range-bound pattern, many are hopeful that Cardano can transition from stabilization to a broader recovery phase.
One factor contributing to the positive outlook for Cardano is institutional positioning. Grayscale recently conducted its quarterly rebalance of the Grayscale Smart Contract Fund, with Cardano retaining its position as the third-largest holding at 18.55% of the portfolio. This demonstrates steady institutional confidence in Cardano, despite its restrained price performance in recent times.
Historically, when institutional exposure remains steady amid price consolidation, gradual repricing periods have followed, rather than immediate breakouts. From a technical standpoint, Cardano’s price has started to break out of a multi-week consolidation phase. The chart indicates a breakout above a flat base that had restricted price movements towards the end of December, with the $0.38–$0.40 region now acting as support, and $0.45 emerging as the next upside level to watch.
Analysts are also optimistic about Cardano’s prospects. Kevin Kean highlighted a favorable structural reclaim for ADA, supported by moving averages. The chart shows ADA regaining a previous horizontal level and moving back above short-term and mid-term moving averages, signaling early buyer strength. Maintaining price above the $0.36–$0.38 support range is crucial for sustaining this positive momentum.
Looking at a higher timeframe, there is a broader accumulation thesis for Cardano, as outlined by CryptoPatel using a multi-year chart. Cardano is currently within a long-term accumulation zone after a significant correction from the 2021 highs. The price is consolidating between a macro ascending trendline and established resistance levels. The strong demand area between $0.38 and $0.28 has repeatedly served as a base during previous market cycles, indicating a bullish long-term structure as long as prices remain above this zone.
To summarize, Cardano’s support and resistance levels to monitor include:
Key Support Zones:
– $0.38–$0.40 (short-term structural base)
– $0.36–$0.38 (critical invalidation zone)
– $0.28–$0.30 (high-timeframe accumulation support)
Key Resistance Levels:
– $0.43 (near-term breakout confirmation)
– $0.55–$0.60 (prior structural resistance)
– $1.00–$1.20 (macro breakout zone)
Market observers emphasize the importance of establishing acceptance above resistance levels before aiming for higher targets. Cardano’s potential for a broader recovery is supported by institutional confidence, technical analysis, and a long-term accumulation thesis, making it an asset of interest for many investors.
