Will It Crash Below $0.383?

Key Insights:

• ADA trades at make-or-break support—losing $0.383 could trigger a deeper move to $0.347.
• Long-term structure holds, but $0.30 must remain intact to keep bullish outlook on track.
• Break above $1.20 remains the target for bulls eyeing a long-term trend reversal in ADA.

Cardano (ADA) was trading at $0.3942 after falling 2.38% in the last 24 hours. Despite the daily decline, the price has gained over 13% in the past week. ADA is currently in a correction phase, following a recent move higher earlier this month. The 4-hour chart shows a retracement unfolding, with the price pulling back after reaching a local high.

Support is being tested near $0.383. If this level breaks, the next area to watch is $0.347, which aligns with a key Fibonacci retracement zone. Market watchers are closely observing these levels.

 As shared by Man of Bitcoin, 

“A break below would likely send prices toward the descending trendline.”

Key Support Zone Holds on Larger Timeframes

On the 2-week chart, ADA was trading just above a strong support range between $0.38 and $0.28. This area has held firm since mid-2022 and has seen repeated buying interest. The chart pattern shows the price holding a long-term ascending trendline, suggesting that the structure remains intact.

There is also a symmetrical triangle forming, with the price compressing between rising support and falling resistance from previous highs. As long as ADA remains above $0.30, the broader setup stays in place. CryptoPatel noted that this structure reflects a phase of accumulation.

Breakout Levels May Set Direction

A clear move above the $1.00 to $1.20 range would mark a shift in trend. This resistance zone has capped price movements in the past. If the price manages to close above this range, it may pave the way for targets around $2.60, $5.00, and even $10.00 over time. These levels are not immediate but may come into play if the bullish setup remains valid.

Until that breakout occurs, ADA remains inside a wide range. Price action has been sideways for months, and buyers have not yet shown enough strength to push through resistance.

Focus on $0.383 as Market Waits for Clarity

The level at $0.383 is critical in the short term. A clean break below could lead to a drop toward $0.347. If this second support fails, the next zone is around $0.313. These levels match deeper Fibonacci retracement zones and may attract interest if reached.

At the time of reporting, ADA trades in a narrow band, and the next move depends on whether $0.383 holds. A bounce would keep the current structure alive. A drop below could shift the short-term trend and test deeper levels in the current correction.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.