Cardano Drops 25.85%, Then 8.52%—Why Analysts Still Predict $10

Cardano (ADA) has endured a sharp correction, losing 25.85% in seven days and another 8.52% in 24 hours. Many investors wonder why this leading altcoin suffered such a dramatic decline. Currently trading at $0.7428, ADA had recently surged to $1.13 before tumbling. Despite the steep drop, some analysts remain confident that ADA could still rally to $10. The question remains: What caused this massive price swing?

Trump’s Crypto Reserve Announcement Shocked the Market

Earlier this month, ADA’s price skyrocketed after U.S. President Donald Trump announced a government-held cryptocurrency reserve. The reserve includes Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and ADA. Investors initially reacted with optimism, fueling a strong rally across the crypto market. However, Trump later clarified that the reserve would not involve new purchases but would only hold existing assets. This statement triggered a sharp shift in market sentiment, leading to widespread sell-offs. ADA, like other altcoins, faced significant selling pressure as traders reassessed their positions.

Could ADA Still Reach $10? Analyst Dan Gambardello Thinks So

Despite recent price struggles, prominent crypto analyst Dan Gambardello remains optimistic about ADA’s long-term potential. His latest chart analysis highlights a rounding bottom pattern, a classic bullish reversal indicator. This formation suggests that ADA could regain strength if it holds key support levels. According to Gambardello, if Cardano (ADA) can break above $1.50, it could enter an exponential growth phase. His technical projections suggest a potential rally toward $10 if ADA maintains momentum.

Technical Indicators Suggest a Possible Rebound

Current technical indicators provide mixed signals, but some suggest ADA might be gearing up for a recovery. The Relative Strength Index (RSI) stands at 46.86, indicating neutral to slightly oversold conditions. This level often precedes a price rebound, provided buying pressure increases. The Bollinger Bands show that ADA’s price is hovering near the lower band, a sign that a short-term bounce may occur. If buyers step in, ADA could see a sharp recovery from its recent decline.

Key Price Levels Will Determine ADA’s Next Move

ADA must reclaim critical price levels to confirm any bullish reversal. The 20-day Exponential Moving Average (EMA), currently at $0.80, presents the first hurdle. If ADA surpasses this resistance, it could attempt to reclaim $1.13, the recent local high. Breaking past $1.50 would strengthen bullish momentum and increase the likelihood of a $10 rally. However, if ADA fails to hold support above $0.70, further downside risks could emerge.

Is Now the Right Time to Buy ADA?

The recent market correction has created uncertainty, but many investors see an opportunity. ADA’s price dip has pushed it into a crucial decision zone. If it holds support and regains momentum, buyers could drive a strong rebound. On the other hand, failure to sustain key levels may lead to further declines. Traders and investors should monitor the market closely and assess whether ADA can regain strength. With bullish analysts maintaining their $10 target, the coming weeks will be crucial for ADA’s future.

In conclusion, Cardano’s recent volatility highlights the unpredictable nature of the crypto market. The Trump administration’s crypto reserve clarification triggered panic selling, but analysts still see long-term potential. If ADA breaks resistance and gains traction, a recovery could follow. However, if selling pressure continues, the price could remain under pressure. Investors must stay informed and watch for signs of strength before making decisions. Will ADA recover and reach $10, or will it struggle to regain momentum? The next few weeks will provide the answer.

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.