ADA Battles Crucial Support Zone, Can Bulls Prevent a Breakdown?

• ADA tests key support at $0.67-$0.81; holding above could trigger a rebound, while failure may lead to further downside.
• Strong resistance at $0.75 persists, with past rejections leading to sharp declines; traders closely watch for a breakout.
• Market trends in Bitcoin and Ethereum may influence ADA’s next move; a rebound could signal another resistance test.

Cardano (ADA) is testing a crucial support zone between $0.67 and $0.81. Holding above this range could lead to a strong rebound. However, a failure to sustain this level might trigger further downside movement. Currently, ADA is trading near $0.7019, reflecting a critical phase for the cryptocurrency.

Historical Resistance and Price Action

ADA has struggled to maintain momentum above the $0.75 resistance level. In early 2022, the price traded above this zone before experiencing a steep decline. Throughout 2023, multiple attempts to break past this resistance failed, reinforcing strong selling pressure.

In late 2023 and early 2024, ADA surged towards the resistance again but faced rejection. Although the price briefly moved above in early 2024, it quickly fell back. The latest movement shows a downward trend, with the price attempting to stabilize above $0.70.

The current price action indicates a battle between buyers and sellers. The support zone between $0.67 and $0.81 remains a decisive level. If buyers step in, another retest of the resistance zone could occur. Conversely, failure to hold the above support may lead to further losses.

Moreover, historical trends suggest that rejections at this level often lead to sharp declines. Consequently, traders are closely monitoring whether ADA can regain strength above $0.75.

Market Sentiment and Future Outlook

Volume and momentum indicators are not visible. However, price action alone highlights strong supply and demand dynamics. The consistent resistance near $0.75 suggests that sellers dominate this level. Additionally, the latest breakdown from recent highs raises concerns among traders.

Besides, investors should consider broader market conditions. If Bitcoin and Ethereum continue their bullish momentum, ADA might follow suit. On the other hand, a weak crypto market could intensify downward pressure. ADA must hold its current support level to maintain bullish hopes. If a rebound occurs, it could pave the way for a retest of $0.75. However, another rejection may lead to deeper declines.