Cardano (ADA) Struggles to Hold Its Ground, Eyeing a Possible 50% Plunge

The leading altcoin, Cardano (ADA) has been on a rough ride, struggling to hold its ground as traders eye a possible 50% plunge.

Leading cryptocurrency Cardano (ADA) has been struggling to stay afloat as it trades at a critical juncture that could decide the next major move for the token. As the price battles key resistance and shows signs of weakness, one analyst is now highlighting a critical support level that, if lost, could see ADA plunging by 50%.

According to cryptocurrency analyst Ali Martinez, who is known for his analysis on X (formerly Twitter), if ADA slips below the $0.80–$0.60 zone, then the sell-off is likely to accelerate, and the next logical stops are $0.50 and $0.40.

However, on the bullish side for Cardano, the analyst revealed that if ADA can survive the $0.75-$0.80 zone, then a potential $2 target is the next run for the token.

Relative Strength Index (RSI) at 41.98, shows weak momentum.

Signals Mixed As Critical Support Holds

On Monday, ADA was battling key resistance, and if it loses its critical support level at $0.70- $0.72 could trigger a sharp drop.

Cardano was down 0.79% in 24 hours and traded around $0.7263 at the time of writing. Earlier, ADA plunged 15.53% in a day, dropping from $0.7738 to $0.6536 before rebounding.

The price action saw strong selling pressure emerge, pushing ADA back from the $0.75-$0.80 zone, where it encountered triple resistance.

If the bears succeed in sinking ADA below $0.58, the next logical stop is $0.40, which translates to a 50% decline from recent highs.

If it can hold above $0.7100, it might pave the way for a return to $0.7800 and open up the possibility of a push toward $0.8400. However, if it slices through that support, the door swings open for $0.6600 and lower.

On-chain data from SosoValue backs up the bearish case. A 94% liquidation imbalance suggests sellers are in control, with few buyers stepping in to slow the decline.

Despite its current struggles, there are survival chances that Cardano’s smart contract upgrades and DeFi expansion could fuel a turnaround. Also, the MACD recently flashed a golden cross, hinting at a shift in momentum.

ADA’s CMF at -0.03 signals weak buying pressure

If Cardano can manage to stay afloat and avoid slipping below $0.60, there’s still a potential shot at reclaiming $0.7500, if bulls and whales decide to purchase and hold longer.

If ADA can break past $0.75 and hold $0.80, momentum could flip bullish, sending prices toward $0.90–$1.00. From there, a steeper ascent to $1.20-$1.30 is possible before a final push to $2.00.

However, if Cardano fails to break above $0.7500 another leg down is likely. Cardano is presently at a turning point. A drop below $0.65 and $0.58 could trigger a cascade toward $0.40, but a strong bounce above $0.75 might shift sentiment.