Cardano ADA is bouncing back to begin the week after collapsing below $0.45 last week amid broad-based crypto declines. However, the leading smart contract token faces further turbulence before confirming a durable bottom, according to the latest insights.
Cardano fell as low as $0.45, though it did recover nearly 16% over the weekend. The swift reversal led some ADA enthusiasts to call an end to the bearish momentum in recent weeks.
However, analyst Crypto ZX believes more sideways ranging and potential drawdowns lie ahead before Cardano can convincingly signal improving sentiment. Immediate resistance around $0.52 halted last week’s upside attempt and remains a barrier.
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Cardano remains stuck at major resistance
ZX notes that a decisive push above that technical barrier could pave the way to regaining near $0.60. However, failure to hold support at $0.45 and below risks retesting the 2022 low under $0.35 in the weeks ahead.
For now, the analyst advises dollar cost averaging on dips for long-term believers while acknowledging considerable uncertainty in the short term.
The downbeat caution comes even as digital assets see a risk-on start to the trading week. Cardano and other altcoins are again taking cues from Bitcoin’s price action, which has bounced firmly off its $38K support area.
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However, ZX sees little technical evidence yet that the path of least resistance for Cardano ADA won’t remain to the downside once the relief rally stalls out. Previous support zones figure to supply renewed selling pressure on additional tests.
Of course, bullish voices can quickly return should Cardano build on its nascent rebound back above $0.50. ZX believes that ADA could potentially exhibit a 40% surge based on the Fibonacci retracement level.