Cardano Traders Should Watch These 3 Price Levels Before the Next Move

Cardano ($ADA) faces another potential decline before its recent price recovery qualifies as a true bullish reversal, according to analyst More Crypto Online.

In a video shared on X, the analyst explained that $ADA’s decline from its December high remains a concern. Despite recovering from its June low, the rebound lacks sufficient strength to confirm the start of a bullish cycle.

On the four-day $ADA/USD chart, the price is trading within an upward channel. $ADA was trading around $0.25, with $0.315 and $0.405 standing out as key resistance levels for the ongoing recovery.

$ADA Faces Another Drop Before Recovering

Analyst More Crypto Online said Cardano ($ADA) is moving within an upward price channel, but its choppy price action points to a temporary recovery. According to the analyst, $ADA remains in a corrective phase, with another low ahead before a sustained recovery takes shape.

However, he also outlined an alternative scenario in which $ADA has completed its first five-wave upward move and resumes its advance after a short-term pullback. Although the price action resembles a five-wave rally, the analyst said the move lacks the strength needed to confirm a lasting bullish reversal.

The next pullback will be critical in determining whether buyers retain enough momentum to push $ADA higher or whether another decline lies ahead.

$0.315 and $0.405 Are Key $ADA Price Levels

The YouTuber identified $0.23, $0.315, and $0.405 as important price levels for Cardano. Notably, the $0.315 level stands out because it aligns with a key Fibonacci level and previous price highs. A breakout above this resistance would strengthen $ADA’s bullish outlook.

Accordingly, if the rally gains momentum, the next major target sits at $0.405. Reaching this level requires $ADA to overcome intermediate resistance zones first. A longer-term downward trendline also remains a major obstacle to the recovery, adding another barrier for buyers.

Cardano Must Hold the $0.16–$0.215 Support Zone

Meanwhile, the analyst said $ADA price needs to hold the $0.16–$0.215 support zone to preserve its recovery outlook. In the next pullback, $ADA could retest this zone. A brief move below the rising channel would not invalidate the recovery, as long as key support levels remain intact.

The analyst highlighted $0.16 as the most important level for buyers to defend. A breakdown below this threshold would significantly weaken the bullish outlook.

Essentially, $ADA’s next move hinges on the strength of its support zone and the market’s response to the coming pullback. The price action will determine whether the current recovery develops into a sustained uptrend or gives way to another decline.

At press time, $ADA is trading at $0.2524, up 21% over the past 30 days despite the recent retracement.