
Cardano’s (ADA) price has been closely watched by crypto enthusiasts throughout 2024. After a strong upsurge that brought ADA to a high of $5, the token experienced a correction phase, pulling back by 40%. Now, as per crypto analyst Michael van de Poppe, ADA is nearing the end of this correction.
After hitting lows of $0.7 in May, ADA began an impressive uptrend, eventually leading to a 3X rally from those lows. However, ADA failed to break past the crucial $1.2 resistance level, which triggered a sell-off. This sell-off was further exacerbated by the broader crypto market weakness, causing ADA to lose support at $1.
Despite the sell-off, ADA managed to find support at the 0.5 Fib level around $0.85, preventing any further declines. This level has held strong throughout the year, and any breakout from here could determine the next directional move for ADA.
According to crypto analyst Ali Martinez, the most critical support zone for ADA lies between $0.77 and $0.68. This range could play a vital role in determining the token’s price trajectory.
On the other hand, ADA’s price has consistently closed below the 50-day moving average, signaling a notable weakness in bullish momentum. This could indicate that ADA might witness faded buyer activity for some more time before a bullish reversal takes place in H1 2025.
However, persistent selling pressure could push the token below $0.85, potentially triggering a rapid decline toward the next major support at $0.77. Traders are closely watching ADA’s price action as the conference approaches, which could serve as a catalyst for renewed interest and upward momentum.
Meanwhile, market analysts suggest that holding this support is vital for ADA to stage a quick recovery back to the $2 mark. But traders should be prepared for both scenarios as the year progresses and the dust settles following the upcoming event.
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