Cardano’s Critical Support Level: Will It Hold Amid Market Turmoil?

Renowned crypto analyst Cheeky Crypto emphasized the importance of Cardano (ADA) holding a crucial support level. The last few weeks have seen a dramatic decline across the crypto landscape, with many projects, including Cardano, experiencing substantial pullbacks.

In a recent YouTube video, Cheeky Crypto noted that Cardano’s current support at $0.3575 is vital to prevent further declines. If this level fails to hold, Cardano could face a bearish scenario, potentially targeting a low of $0.2923. This perspective underscores the market’s fragile state and the importance of key support levels in maintaining stability.

The weekly chart shows that Cardano has fallen dramatically to $0.3575, representing a 55.8% retracement from March 11 to June 17. Despite this significant drop, there is a potential silver lining, as many analysts view this as a buying opportunity. The anticipated market reversal could propel Cardano towards an upside target between $0.53 and $0.73.

Cheeky Crypto highlighted that Cardano’s recent upward push met resistance at the channel’s mid-level using the Gaussian Channel Indicator. The price has since retreated to $0.373 but has not yet set a new lower low, which would occur if the price falls below $0.3575. Historical volume support indicates that maintaining this level is crucial for avoiding deeper declines.

According to analysts, Cardano must maintain support above previous volume support levels in the daily time frame. Should the price close below these levels, it could signal a decline towards $0.26 to $0.242, a bearish target but a plausible scenario given the lack of support in this range. 

Cardano’s recent price structure indicates a corrective pattern rather than an impulsive drop. The critical level of $0.3575 would determine the next phase of Cardano’s price action. Holding this support could lead to a rally towards $0.53 to $0.73, aligning with broader market recovery expectations. 

Short-term momentum indicators suggest oversold conditions, but the daily stochastic RSI still indicates potential downside movement. Cheeky Crypto’s analysis suggests a strong wave count and bullish signal, indicating Cardano might soon rise significantly. Investors should watch for a confirmed support level before expecting a rally as Cardano navigates this pivotal juncture in a turbulent market.