Usman Salis
Cardano (ADA) is sitting at a make-or-break level around $0.54, and traders are watching closely to see which way it breaks. The crypto could either bounce back strong or fall into a deeper slide toward $0.40.
Cardano (ADA) Price Stuck in Tight Range After June Drop
Cardano has been bouncing between $0.529 and $0.611 ever since it crashed to $0.51 on June 22. Right now, ADA is up 2.19% in the last 24 hours, trading at $0.585 as the crypto market saw some relief during Sunday morning trading. The bounce came after $71 million in shorts got squeezed out, catching bears off guard.
But here's the thing - the broader crypto market is still dealing with economic uncertainty, and Bitcoin's weak performance isn't helping altcoins like ADA. The $0.54 level has become the line in the sand that everyone's watching.
On-chain analyst Ali recently tweeted that this dip could be exactly what traders have been waiting for. "A dip to $0.54 could offer a prime entry point for Cardano ADA," he posted on X, calling out the technical importance of this support zone.
ADA's $0.54 Support Has Been Holding Strong
The $0.54 level isn't just some random number - it's proven itself as solid support over the past few weeks. Just look at what happened on July 2nd: ADA bounced hard from this level and shot up to $0.611 the next day before pulling back.
This area is turning into what traders call an accumulation zone, where smart money might be quietly buying the dip. But if this support cracks, things could get ugly fast. The next stop would be $0.50, and that's where buyers will really need to step up.
If $0.50 fails too, ADA could complete what looks like a descending triangle pattern, which is trader-speak for "more pain ahead." We're talking about a potential drop to $0.40 if the bears take control.
What's Next for Cardano (ADA): Breakout or Breakdown?
The setup is pretty straightforward. If ADA breaks below $0.54 and can't hold $0.50, we're looking at a trip to $0.40. That would complete the bearish pattern and signal that sellers are in full control.
But flip the script, and things get interesting on the upside. If buyers can push ADA above $0.61, the next target is the 50-day moving average at $0.67. Beyond that, there's the 200-day moving average at $0.758, which would signal a real trend change if ADA can break through.
The bottom line? Cardano is at a crossroads. The $0.54 level is where the rubber meets the road, and how ADA reacts here will likely set the tone for the coming weeks. With Bitcoin still struggling to find direction and macro uncertainty hanging over the market, ADA holders are hoping this support holds firm.
Usman Salis
