Will ADA Price Crash to $0 or Is a Rebound Incoming?

Cardano (ADA) has been through a rollercoaster ride in recent months, showing both massive gains and sharp declines. After reaching a peak above $1.20, ADA suffered a significant correction, dropping below $0.60 before experiencing a dramatic price surge. However, despite the recent spike, the price is facing strong resistance, leaving traders wondering—will ADA continue its recovery, or is another major drop on the horizon?

In this analysis, we will examine ADA’s key support and resistance levels, the current trend indicators, and whether the price could crash further or regain bullish momentum.

Cardano Price Prediction: What Caused the Recent ADA Price Surge?

ADA/USD Daily Chart- TradingView

Cardano saw an explosive move upward after touching its $0.60 support level, which acted as a psychological bottom for many traders. The sharp increase in price was likely fueled by a short squeeze, where traders betting on further downside were forced to buy back their positions, accelerating the rally.

However, despite this bullish impulse, ADA quickly hit resistance near $1.20, a level that previously acted as a key rejection zone. The price has since dropped to $0.82, showing signs of increased selling pressure.

Has ADA Price Found a Strong Support Level?

ADA's bounce from $0.60 suggests that this area is acting as a strong demand zone. Historically, when ADA has tested this region, buyers have stepped in to push the price higher. If $0.60 holds, ADA could consolidate before making another attempt at higher resistance levels.

On the flip side, if ADA fails to hold above $0.80, another retest of the $0.60-$0.65 zone is possible. If this level breaks, the next major support would be near $0.40, which could send bearish signals across the market.

What Do the Technical Indicators Say?

The Relative Strength Index (RSI) is currently at 52, indicating that ADA is in a neutral zone. However, just a few days ago, the RSI was oversold, meaning that the recent price recovery was likely a result of buyers stepping in at lower levels. If the RSI moves above 60, it could signal continued bullish momentum, while a drop below 40 would indicate renewed weakness.

The Heikin Ashi candles also show some indecision in price movement. While recent candles have turned green, suggesting bullish attempts, the rejection at $1.20 means that bulls are not fully in control yet. For confirmation of a trend shift, ADA must print multiple strong bullish candles above $0.90-$1.00.

Will ADA Break Above Resistance or Drop Lower?

For ADA price to continue its upward movement, it needs to break and hold above $1.00-$1.20. This region has acted as a significant resistance level in the past, and overcoming it would allow for a potential move toward $1.50 in the coming weeks.

However, if ADA fails to break resistance and starts trending lower, the first critical support to watch is $0.80. A break below this level would likely lead to $0.60-$0.65, which is the last major support zone before a potential free fall toward $0.40.

Cardano Price Prediction: Could ADA Crash to $0?

While a complete crash to $0 is highly unlikely, ADA could still experience further declines if market conditions worsen. A major breakdown below $0.60 would raise concerns about deeper losses, and if broader crypto market sentiment turns bearish, ADA could revisit its 2023 lows of around $0.25-$0.30.

That being said, Cardano remains a solid blockchain project with strong development activity. If the crypto market recovers, ADA could still regain its previous highs over time.

Final Thoughts: Should You Buy ADA Now?

ADA’s recent price action suggests a mixed outloo k, with strong support at $0.60 and strong resistance at $1.20. While short-term traders might look for breakouts above $0.90-$1.00 for bullish confirmation, long-term investors may consider accumulating near the $0.60-$0.70 zone if the price dips again.

For now, ADA remains at a critical decision point, and its next move will depend on whether it can break resistance or retest lower levels. Traders should watch the $0.80-$0.90 range closely, as a breakout or breakdown from this level will set the direction for the coming weeks.