Cardano’s next support levels as ADA drops double digits in a week

“It’s going to get worse, it’s going to get redder,” Charles Hoskinson warned.

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

What’s next?

On Friday morning, the ADA fell to around $0.22 (according to CoinGecko data), the lowest level since June 2023. Noted analyst Ali Martinez outlined three key support levels at which 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 extreme case of $0.053.

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

Some industry participants expect further recovery and even a big rally in the future. X user CryptoPatel claimed that ADA is at the exact level that created a huge pump years ago, and wonders if history is going to repeat itself. They set a short-term target of $0.40, followed by a “full cycle extension” above $3. However, the analyst warned that a weekly close below $0.10 would invalidate the setup.

X user Sssebi also joined in noticing that ADA has never been so oversold on the weekly time frame in its entire history. According to CryptoWaves, the Relative Strength Index (RSI) on that scale has fallen to around 28, matching the lowest figure of 2019.

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The technical analysis tool measures the speed and magnitude of recent price changes and can indeed help traders determine whether the asset is oversold or overbought. Ratios below 30 indicate that the valuation has fallen too quickly in a short period of time, suggesting it could be on the verge of a rebound, while anything above 70 is considered a bearish zone.

ADA’s exchange netflow also indicates that stabilization is on the way. Data from CoinGlass shows that outflows have dominated inflows in recent weeks and months, indicating that investors continue to shift their holdings from centralized platforms to self-custody. This usually results in reduced sales pressure.

Hoskinson’s crucial losses

Cardano’s founder, Charles Hoskinson, reported lost more than $3 billion due to the market decline. He predicted that prices could continue to fall, but at the same time gave investors some inspiring guidance that could help them get through the turbulent times:

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