Cardano (ADA) Price Analysis and Prediction: Will ADA Recover After Reaching a Crucial Support Level?

ADA, the native token of the Cardano blockchain, has experienced a significant price drop in the past 24 hours, reaching a crucial support level.

ADA price drops 13% to reach a crucial support level

The native token of the Cardano blockchain, ADA, has experienced a significant price drop in the past 24 hours, reaching a crucial support level. As of today, February 25, 2025, ADA has dropped 13% and is currently trading at $0.67, while its trading volume has surged by 110%.

Cardano (ADA) Technical Analysis and Upcoming Level

ADA’s recent price drop has brought it to a crucial support level at the $0.65 mark, as per expert technical analysis. Historically, this level has acted as a strong price reversal zone. Moreover, ADA’s daily chart is flashing a crucial bullish signal, as technical indicators are showing a bullish divergence over the same period.

Besides this bullish divergence, ADA’s daily chart seems to be forming a double-bottom price action pattern on the daily timeframe. This bullish outlook suggests that ADA’s price might soon recover and experience a remarkable upside momentum.

Based on recent price action and historical trends, if ADA manages to hold above the $0.65 level, there is a high possibility that the asset could soar by 20%, reaching the $0.84 level in the upcoming sessions.

Mixed-Sentiment By On-Chain Metrics

Following a notable price drop and as ADA reaches a crucial support level, whales and long-term holders have been accumulating ADA tokens, as per the on-chain analytics firm Coinglass.

Data from spot inflow/outflow reveals that exchanges have seen a significant outflow of $22 million in ADA tokens. This substantial outflow from exchanges suggests potential accumulation, which could create buying pressure and drive further upside momentum, a trend that the price has already begun to experience gradually.

However, traders, despite the bullish market sentiment, seem to be betting on the shorter side, expecting the price to continue declining in the coming days. At press time, the major liquidation areas are at $0.663 on the lower side and $0.708 on the upper side, with traders being over-leveraged at these levels.

Additionally, traders have held $3.25 million in long positions and $8.41 million in short positions at these levels. This data indicates that bears remain active and are currently dominating the asset.