Cardano (ADA) Price Searches for Support After Shedding Crypto Reserve Gains

Key Takeaways

• Cardano (ADA) trades inside the $0.75 horizontal support.
• The Cardano price decreased by over 35% last week.
• Will ADA bounce at this support, or will it break down?
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Last week brought positive Cardano news. Donald Trump named ADA one of the five assets of a strategic crypto reserve.

However, Cardano founder Charles Hoskinson was one of the most notable snubs from the White House Crypto Summit at the end of the week.

Nevertheless, ADA has lost all its gains and now risks breaking down from a long-term horizontal support level.

Can ADA bounce and prevent a breakdown, or are new lows inevitable? Let’s find out.

ADA Returns to Support

The weekly time frame chart shows that ADA created its first lower high this cycle (red icons). The price reached its cycle high of $1.32 in December 2024 before reaching a lower high of $1.19 in February 2025.

Cardano’s second high was especially worrisome since it was followed by a bearish candlestick next week.

The ADA price now trades inside a $0.75 horizontal area, a critical level that acted as resistance for over two years.

The ADA trend could be determined by whether ADA bounces or breaks down.

Technical indicators lean bearish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are falling. The RSI is slightly below 50, while the MACD has made a bearish cross.

Therefore, the weekly ADA chart leans bearish, suggesting that a breakdown is more likely than a bounce.

Failed ADA Price Breakout

The daily time frame shows that ADA rallied on March 3, spurred by the crypto reserve announcement. Bullish divergences in the RSI and MACD (orange) also preceded the upward movement.

However, while ADA initially broke out from a descending resistance trend line, it was rejected by the $1.15 horizontal resistance area. This created a deviation and a lower high.

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The ADA price has fallen since, invalidating the previous breakout. The wave count suggests ADA is in wave C of an A-B-C structure that began after the cycle high. Giving waves A and C the same length leads to a low of $0.38.

Since this outline would lead to a breakdown from the $0.75 horizontal support area, it would suggest the ADA trend is bearish.

So, while a bounce could occur afterward, it will not invalidate the long-term bearish outlook.

On the other hand, breaking out from the resistance trend line and the $1.15 area will invalidate the bearish ADA prediction, possibly leading to new highs. This currently seems unlikely.

Breakdown Ahead

The Cardano price has lost all of its gains resulting from the crypto reserve announcement on March 3.

Additionally, ADA failed to maintain its breakout and risks falling below a long-term horizontal support area. If this happens, it will confirm the long-term trend is bearish.