Cardano’s Next Support Levels as ADA Fall by Double Digits in a Week

“It’s going to be very bad, it’s going to be red,” warned Charles Hoskinson.

Cardano’s ADA has dropped by double digits in the past seven days, in line with the bloodbath that has engulfed the entire crypto market.

The question now is whether the price is headed for further declines or a much-needed recovery.

What’s Next?

On Friday morning, ADA fell to around $0.22 (according to CoinGecko data), the lowest level since June 2023. Renowned analyst Ali Martinez identified three key support levels where the asset could find buyers if the sell-off continues. The first line is $0.249, the second is $0.115, and the third is the worst case at $0.053.

As shown in the chart below, there was a brief breakout below the $0.249 support level, but the bulls have regained lost ground, and ADA is currently trading around $0.26.

Some industry participants expect further recovery and even a major rally in the future. X user CryptoPatel has alleged that the ADA is at the exact same level that sparked the big pump years ago, wondering if history is about to repeat itself. They set a short-term target at $0.40, followed by a “full cycle extension” above $3. However, the analyst warned that a weekly close below $0.10 will make the setup ineffective.

X user Sssebi chimed in, too, noting that ADA has never been oversold on a weekly basis in its entire history. According to CryptoWaves, the Relative Strength Index (RSI) has dropped to around 28 on that scale, which corresponds to the lowest value witnessed in 2019.

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The technical analysis tool measures the speed and magnitude of recent price changes and can really help traders determine whether an asset is oversold or overbought. Ratings below 30 indicate that the rating has fallen too quickly in the short term, suggesting that a rebound may be imminent, while anything above 70 is considered low.

ADA exchange netflow also indicates that stability may be near. Data from CoinGlass shows that outflows have dominated inflows over the past few weeks and months, indicating that investors continue to move their holdings from centralized platforms to self-storage. This often results in reduced sales pressure.

Hoskinson’s Critical Loss

The founder of Cardano, Charles Hoskinson, reported that he lost more than three billion dollars due to the market decline. He predicted that prices may continue to fall, but at the same time gave investors some guidance that could help them through the turbulent times:

“Don’t let the markets get you down. It’s going to get worse, it’s going to be redder, that’s what it is. But at the end of the day, are you having fun? Find a way. And know that each of you in the cryptocurrency space, you’re doing something important, you’re doing something that has the power to change the world.”