Cardano (ADA) Price Plummets: Is the Rally Over for Good?

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Uh oh, looks like the crypto market is taking a hit, and Cardano‘s ADA $0.77 is no exception. With a 2.4% volatility and a market cap of $27.86 B, it’s facing a 3.87% pullback. Oy vey!

So, will this setback ruin any chance of a post-retest reversal for Cardano? Let’s take a look.

Cardano Price Analysis: Double Retest or Just a Fluke?

The daily chart for Cardano shows a bullish reversal from the $0.68 support level. But, with the short-term reversal topping out above $0.80, Cardano retested the broken resistance trendline. After that, it created a bullish engulfing candle with a 4.8% jump on Monday. But, alas, it was short-lived as it registered a pullback of more than 3%. Yikes!

This bearish pullback broke under the 23.6% Fibonacci level at $0.78, casting doubts over the chances of a post-retest reversal. And, with strong overhead resistance near $0.80, the short-term upside potential is limited. If buyers don’t regain momentum soon, the bearish grip might tighten further.

However, the technical indicators still have a glimmer of hope. The MACD and signal line maintain a positive alignment, and the daily RSI line stays near the halfway level. So, it’s not all doom and gloom!

Cardano Founder’s Optimism: LACE and Bitcoin DeFi

Despite the short-term bearishness, Cardano founder Charles Hoskinson remains optimistic about the future of the network. He said, “Very shortly, we will have Bitcoin support for LACE. We think LACE will be the best Bitcoin DeFi wallet, bringing a lot of transactions from Bitcoin into Cardano.”

With this integration, Cardano could position itself as a serious competitor in the DeFi space, challenging Ethereum‘s dominance in cross-chain transactions. This could bring Bitcoin DeFi to the Cardano network, increasing its user base and network revenue significantly. Fingers crossed!

ADA Price Prediction: Key Levels to Watch

As the short-term trend continues to remain bearish, the Cardano price is likely to retest the broken resistance trendline near the $0.75 mark. Closing under the trendline will likely test the $0.68 support level. But, if there’s a bullish sustenance above the 23.60% level, it could prolong the recovery rally to challenge the 50% Fibonacci level at $0.9173. Optimistically, stability in the market could break the 78.60% resistance level at $1.08.

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2025-02-18 11:29