thecryptobasic.com
The recent retracement has brought Cardano to a key buying zone, suggesting that a possible recovery could be in the pipeline.
Specifically, the current price level marks the support area in a broader descending channel, an area that could determine the near- and mid-term price development for Cardano. Losing this level or consolidating around until a specified timeline could be detrimental to bulls.
Key Point
- Recent retracement price action has brought Cardano to a key buying zone, hinting that the coin could recover higher soon.
- The recent correctional wave, which saw ADA drop to a low of $0.33 last week, pushed it close to the demand zone at $0.32
- Cardano needs to rebound from here before March or risk a steeper price decline.
- If the broader crypto market remains this heavy, $0.50 would be an optimistic move for Cardano.
Cardano at Support
Analyst SwallowAcademy shared this time-sensitive Cardano price analysis, urging close monitoring, especially for short-term holders. His TradingView commentary discussed the cryptocurrency’s trend on the 4H and daily timeframes, along with key areas to note.
An accompanying chart shows that ADA is currently near the bottom of a descending channel. While the chart does not show the origin of this consolidatory channel, the analyst emphasized that the current phase would be decisive for Cardano’s price development.
The recent correctional wave, which saw ADA dump to a low of $0.33 last week, pushed it close to the demand zone at $0.32. Meanwhile, as previously recorded, the market watcher expects a recovery from there.
Cardano Needs to Bounce from This Level
Specifically, the analyst insisted that Cardano needs to rebound from here before March. If it does not move up by then, he asked holders to “close shop and go on vacations.”
He added that if Cardano fails to react positively from the descending channel support by the end of March, then investors who do not sell their investments would be left “holding the bag” for the remainder of 2026.
However, he believes that ADA would go up from here. SwallowAcademy highlighted a bounce towards the $0.40 region from here, with the potential to climb to $0.50 before March. His chart identified $0.54 as the upper target but does not rule out a move to the “zero line” at $0.61.
$0.50: An Optimistic Target?
In a follow-up comment, he called attention to the current negative trend in the crypto market. According to him, $0.50 would be an optimistic move for Cardano if the broader crypto market remains this heavy.
Notably, Bitcoin dropped to $86,000 last week before rebounding to its current level, with major altcoins following suit. Unless there is a course reversal, Cardeano may not reach greater heights.
This emphasizes Cardano’s dependence on broader market trends and how further sideways price action could undermine bullish expectations. As a result, there is no guarantee of a Cardano uptrend, nor is it certain that prices will fall further.