Cardano (ADA) Holds Ground at $0.90 Amid Market Decline
Cardano (ADA) has retraced after hitting a multi-month high. Analysts suggest it may reclaim resistance levels and reach new highs soon.
Recent Market Performance
- ADA dropped 11% after surpassing $1.00 for the first time since March.
- The drop was due to broader market pullbacks, resulting in over $1.05 billion in liquidations within 24 hours.
- US inflation data showed annual headline inflation at 3.3%, exceeding the 2.5% forecast.
- The US Treasury Secretary announced no additional Bitcoin purchases for the Strategic Bitcoin Reserve.
- Bitcoin retraced from its all-time high of $124,128 to the support zone between $117,000-$118,000.
- Despite this, ADA recorded a 3.5% increase in the last day, remaining one of the few gainers among top cryptocurrencies.
- ADA reached a five-month high of $1.02 before stabilizing between $0.89-$0.91.
Future Predictions
- Analyst Ali Martinez indicated ADA is trading in a descending channel since Q4 2024, previously peaking at $1.32.
- A breakout above $0.84 could target a 70% rally to $1.50.
- Martinez noted ADA's current price structure mirrors that of previous cycles but appears more gradual.
- Past patterns show Cardano consolidating before breaking out to new highs; similar movements are expected this cycle.
- The target for potential resistance is around $1.80.
- As of now, ADA is trading at $0.90, reflecting a 20% increase over the past week.
