Cardano (ADA) Price Could Decline to $0.42 if Key Support Fails

Cardano (ADA) prices rose over 3% on Friday, amidst a bullish trend in the crypto market. This increase follows a week of negative performance. Analyst Ali Martinez warns that ADA could face significant losses if critical support levels fail to hold.

Potential Decline Risks

Martinez indicates that ADA is near a key support zone based on Fibonacci retracement levels.
Current price is $0.66, just above the 50% retracement level at $0.63.
A daily close below $0.63 could trigger a bearish trend, leading to a possible drop to $0.53 (61.8% level) and potentially down to $0.42 (78.6% level).

Market Outlook for ADA

Cardano has struggled since reaching $1.30 in December 2024, entering a corrective phase.
Defending the $0.63 level is crucial for maintaining bullish sentiment.
A reclaim of the $0.78-$0.80 range may indicate a potential price rally.
Currently, ADA is down 5% weekly and 33.58% monthly, reflecting bearish trends.
Daily trading volume increased by 19.56%, suggesting heightened market interest and potential sustainability of recent gains.