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Market analyst believes Cardano (ADA) eyes a potential rally if its major support level holds amid the market uncertainty.
Cardano is experiencing a retracement phase at a time when an analyst has shared bullish perspectives on its price trajectory.
In an analysis published by “Melika Trader” on TradingView, the focus was on ADA’s short- and long-term price action, highlighting support and resistance levels that could determine its future.
Potential Long-term Bullish Reversal
According to this analyst, Cardano’s price has found support between $0.30 and $0.35, with previous price action indicating demand within this range. This level aligns with historical demand zones, suggesting a foundation for potential recovery.
The analyst noted the possibility of a bullish reversal as ADA attempts to form a bottom after engulfing this support region.
If the support holds, a sustained rally could be likely, targeting the next major resistance level between $1.20 and $1.80. However, failure to maintain this support could push ADA to retest levels below $0.18.
Support and Resistance in the Short Term
In the short-term outlook, ADA is currently testing a support zone between $0.33 and $0.34, which coincides with a lower trendline. The analyst pointed out the potential for a bullish rebound from this zone, with ADA possibly targeting the $0.38 to $0.39 resistance area per her 4-hour price chart.
The $0.39 resistance previously marked a level of strong selling pressure. If ADA manages to break through, it could signal a short-term bullish shift. However, if this immediate support fails to hold, ADA might experience a downward move toward the $0.30 mark.
Cardano’s Future per Founder
Amid ongoing price analysis, Cardano’s founder, Charles Hoskinson, has shared an ambitious outlook for the network’s long-term growth. Speaking at the 4th annual Cardano Community event in Buenos Aires, Hoskinson highlighted the network’s growth into an 11-figure platform with millions of users and a leading research team.
He asserted that Cardano could surpass Ethereum in a decade and eventually overtake Bitcoin in the following decade. Furthermore, he envisions a future where many governments might adopt Cardano’s infrastructure due to its reliability. This perspective has triggered debates, with some viewing the projection as overly ambitious, given Bitcoin’s dominance in the sector.