Cardano (ADA) Holds Strong at $0.73 – Will It Bounce 15%?

The crypto market remains highly volatile, with altcoins struggling at key support levels. Cardano (ADA) currently tests a crucial pivot point at $0.73. This level has historically served as strong support, making it a vital area to monitor for potential price action.

With the altcoin market capitalization hovering at $1.22 trillion, ADA holders wonder if Cardano will stage a powerful comeback or face a deeper correction. The coming days will determine its direction.

Cardano Price Analysis: Is a Falling Wedge Breakout Possible?

On the daily chart, Cardano’s price forms a falling wedge pattern, which often signals a bullish reversal. The trendline converges at the $0.73 support level, but downward pressure remains strong. ADA dropped 8.56% in a single day, forming a bearish engulfing candle. The price also fell below the lower Bollinger Band, confirming an oversold condition. Buyer momentum remains weak, increasing uncertainty.

Despite these bearish indicators, falling wedge breakouts have historically triggered explosive rallies. Will ADA follow this trend?

Read Also: Cardano in Crisis: Will ADA’s 36% Drop Spark a Comeback?

Whale Activity: Are Large Holders Supporting ADA?

One major concern is the lack of whale accumulation. Recently, Cardano whales offloaded 330 million ADA tokens, increasing selling pressure. So far, whales have not repurchased their holdings, signaling weak institutional confidence. However, large investors often step in during extreme fear conditions. If whales re-enter the market, ADA could see a strong recovery.

NVT Ratio Signals a Possible Reversal

Despite the recent price drop, the Network Value-to-Transaction (NVT) ratio suggests a potential bullish reversal. The 90-day adjusted NVT ratio fell from 5.32 in November 2024 to 1.61. This decline indicates higher transaction activity and increased on-chain adoption. Historically, a falling NVT ratio precedes price surges, suggesting that ADA might be undervalued at current levels.

Key Price Levels: What’s Next for ADA?

With increasing chances of a bullish reversal, Fibonacci retracement levels indicate a critical resistance near $0.8567. This level marks the 23.6% Fibonacci retracement and aligns with the local resistance trendline. The trendline forms a falling wedge pattern with the support trendline, which typically signals a bullish breakout.

Read Also: Shiba Inu (SHIB) Bounces 7% After Brutal Drop to $0.0000116 – Relief Rally or Fakeout?

However, if ADA closes below $0.73, it is likely to test the $0.60 support zone. A break below this level could trigger a sharp decline, signaling a deeper correction phase for ADA.

Should You Buy the Dip?

Cardano is at a crucial moment, and the next few days will determine its fate. If buyers step in, ADA could experience a significant rally driven by technical breakout signals and increased on-chain activity. However, if sellers dominate, a deeper correction could follow.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.