Despite its great recent month, Cardano (ADA) is currently in danger of crashing below $1, with bears taking hold of the cryptocurrency. The recent decline threatens its $1 support level within a falling channel pattern. At press time, ADA sits just over $1.07, down 2% in 24 hours. Its market cap has also fallen 9.5% to $1.5B in that same period.
Due to bullish exhaustion, Cardano’s price faces resistance at a trend line, which has kept its upward momentum in check. The asset has seen a remarkable surge since the start of November, up 51% since November 16. The altcoin’s bearish retracement has broken below the 38.20% Fibonacci level at $1.0826. Additionally, the negative cycle is moving closer to the 23.60% Fibonacci level at $1.0316, according to price charts.
Popular crypto analyst Ali Martinez also pointed out the declining social volumes for Cardano ADA of late. With the total weighted sentiment dropping to -0.786, social volumes have fallen to 206. Martinez described the decline as “just the kind of setup bullish contrarians dream of!” For shorters of ADA, they are hoping that the asset does indeed touch below $1, which would mean a further crash is imminent.
Could Cardano ADA Rebound?
On the other hand, the majority of crypto investors remain bullish on ADA, believing the asset will rebound from its slump. Based on the current price trend, Cardano will likely test the 23.60% Fibonacci level soon. If its price breaks above the overhead trend line, a rebound and extended rally could arrive.
A successful test could unlock upside targets of 78.60% and 100% Fibonacci levels, at $1.2239 and $1.2987, respectively. If the bearish trend extends, the key support levels below $1 are $0.9491 and $0.8746. ADA must stay above the latter level in order to rebound successfully. ADA investors still have a lot to be excited about as well, thanks to recent announcements from Cardano founder Charles Hoskinson.
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Speaking in a recent livestream, the Cardano founder shared plans for 2025. The focus is on decentralized governance, better institutional involvement, and worldwide teamwork to boost ADA’s market position. This new roadmap tackles key network upgrades while keeping security and speed as top priorities. The announcement also triggered hope in ADA’s 2025 outlook, meaning that a rebound could come.
Despite the analysis of ADA’s decline, Ali Martinez also still has optimistic expectations for ADA in the coming year. In a post, Martinez predicted that Cardano would mirror historical patterns and reach at least $4 in 2025.