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

“The situation will get worse and redder,” Charles Hoskinson warned.

Coinciding with the catastrophe that has gripped the entire crypto market, Cardano’s ADA has plummeted by double digits over the past seven days.

The question now is whether prices are headed for further weakness or a long-awaited recovery.

What’s next?

On Friday morning, ADA plummeted to around $0.22 (according to CoinGecko data), its lowest level since June 2023. Renowned analyst Ali Martinez outlined three key support levels where the asset could find buyers if the decline continues. The first line is $0.249, the second is $0.115, and the third is the extreme case $0.053.

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

Some industry observers are predicting further recovery and significant increases in the future. X user CryptoPatel claimed that ADA is at the exact level that caused the massive pump a few years ago and that history may be about to repeat itself. They set a short-term target at $0.40, followed by a “full cycle extension” to above $3. However, analysts warned that the setting would be invalidated if the weekly closing price fell below $0.10.

X user Sssebi also weighed in and pointed out that never in the history of ADA has the weekly timeframe been so oversold. According to CryptoWaves, the Relative Strength Index (RSI) fell to around 28 on its scale, matching the lowest value observed in 2019.

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Technical analysis tools measure the speed and magnitude of recent price movements and can actually help traders determine whether an asset is oversold or overbought. A ratio below 30 suggests valuations have fallen too quickly in a short period of time and may be on the brink of a comeback, while above 70 is considered a bearish zone.

ADA exchange net flows also suggest that stabilization may be on the horizon. Data from CoinGlass shows that outflows have exceeded inflows over the past few weeks and months, indicating that investors continue to move their holdings from centralized platforms into self-custody. This usually reduces selling pressure.

significant loss for hoskinson

Cardano founder Charles Hoskinson reported losses of more than $3 billion due to the market decline. He predicted that prices could continue to fall, but also gave investors some inspirational pointers that may help them navigate these turbulent times.

“Don’t get depressed about the market. Things will get worse and redder. That’s the reality. But at the end of the day, are you having fun? Find a way to do it. And know that each and every one of you in the cryptocurrency industry is doing something important, something that could change the world.”