"If it collapses, it's over; if it holds, it skyrockets"...Cardano, $0.25 determines its fate

▲ Cardano (ADA)

Cardano (ADA) is once again testing the long-term key support level of $0.25. In the past, this price point acted as a starting point for strong upward reversals, and analysis suggests that if the support level holds this time, it could be the initial stage of a structural uptrend.

NewsBTC reported on May 9, citing analysis by Ali Charts, that $0.25 has emerged as Cardano's most crucial support level. Ali Charts explained, based on monthly charts, that this price point has historically served as a strong springboard for major market reversals. He analyzed that whenever Cardano tested this area, it tended to signal the end of a bearish phase and the beginning of a significant upward trend.

The first instance was in January 2023. At that time, Cardano defended the $0.25 support level and subsequently surged by 88.27% over several weeks. NewsBTC stated that this trend indicated a concentration of buy orders and institutional interest at the psychological and technical bottom.

The second confirmed instance was in September 2023. Ali Charts pointed out that Cardano surged by 243% after defending $0.25 again. He analyzed that Cardano is currently touching this key support level once more, and this rebound could be the initial stage of another major structural uptrend.

The crucial point is whether the $0.25 level is defended. Ali Charts believes that as long as Cardano remains above this price point, the technical outlook remains bullish. He set an initial target price of $0.36 and mentioned $0.53 as the target range for a larger trend. Conversely, he warned that failure to defend the $0.25 support level could signal a shift in the market's underlying structure.

Another analyst, Yusuf|Noon, stated that Cardano is poised for further upside as long as it remains above the marked green box support zone. However, he noted that intermediate resistance levels could be obstacles to a short-term uptrend. He explained that Cardano is currently retesting a critical technical zone, but a clear structure sufficient to justify entry has not yet formed.

Yusuf|Noon stated that he prefers to wait for a stronger confirmation structure rather than chasing the price. He analyzed that if a pullback occurs to the thin green box zone and a positive reaction is observed in that zone, it could present a more attractive entry opportunity. He also added that if a sharp market decline occurs, the lower green box would be noted as a potential entry zone. NewsBTC reported that Cardano was trading at $0.27 on the daily chart at the time of writing.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*