- Cardano trades near crucial $0.787 support that could trigger 20% rally.
- Multiple analysts identify key technical levels for potential ADA recovery.
- Token faces bearish double-top pattern with downside target at $0.768.
Cardano maintains proximity to a critical support zone that technical analysts believe could initiate an upward price movement toward $0.95. The cryptocurrency currently trades at $0.78 after declining in the past 24 hours.
Market analyst Ali Martinez has identified the $0.787 support level as pivotal for Cardano’s near-term direction. This same support previously prevented further declines earlier this month when ADA dropped to $0.78 before recovering.
The token consolidated around this support zone before rallying to resistance at $0.95 on September 13. Martinez suggests a similar pattern could develop if bulls defend the current support level successfully.
Technical indicators point to recovery potential
Crypto analyst Crypto T has aligned with Martinez’s assessment of Cardano’s current positioning. The analyst notes that ADA has retested support at $0.787, which coincides with a descending trendline on shorter timeframes.
According to Crypto T’s analysis, Cardano needs to maintain its current levels to enable an upward move. If the support trendline holds, the next resistance targets sit at $0.814 and $0.824.
The potential rally from current levels to the $0.95 resistance would deliver approximately 20% gains for ADA holders. This target aligns with previous price action where the token reached similar levels before encountering selling pressure.
Cardano has dropped 12.6% over the past seven days, erasing gains accumulated earlier this year. The decline mirrors broader cryptocurrency market weakness as digital assets face continued selling pressure.
Bearish scenario threatens further decline
Despite bullish technical scenarios, downside risks remain present for Cardano according to analyst WiverRiders. The commentator has identified a double-top formation that could signal extended bearish price action.
The pattern features two peaks at $0.954 and $0.935, formed on September 13 and 18 respectively. Since completing this formation, ADA has declined consistently from these elevated levels.
WiverRiders projects a bearish target of $0.768 based on the double-top pattern. This downside objective sits roughly 3% below current trading levels, indicating limited room for further decline.
The competing technical scenarios highlight Cardano’s position at a decisive juncture. Bulls must defend the $0.787 support to enable recovery toward $0.95, while failure could lead to additional losses toward $0.768.
Source: https://thenewscrypto.com/why-cardanos-0-95-rebound-target-remains-achievable-despite-decline/