Cardano's native token ADA is currently testing critical support levels not seen since 2023, with technical analysis suggesting a potential decline of over 70% if this key zone fails to hold. As most altcoins begin to show signs of recovery, Cardano remains in a prolonged downtrend, raising concerns among traders and analysts.
According to analysis from More Crypto Online, ADA is testing support in the $0.21–$0.24 range, repeatedly, without showing an impulsive reaction. The weekly chart reveals a large corrective structure that began in 2021, with the current phase being Wave C of an Elliott Wave pattern.
If bulls fail to defend this zone, a realistic target emerges at $0.0925, representing a potential decline of more than 70% from current levels. Deeper Fibonacci extensions even project prices as low as $0.0178, although these remain pessimistic scenarios, not base cases.
Trading volume has dropped by over 13%, signaling fading buyer interest. The 7-day RSI sits near 51, reflecting neutral conditions without any bullish divergence. The $0.243 level has become a key decision point for bulls, who must reclaim $0.255 with conviction to signal a potential reversal. Failure to do so could see ADA decline to $0.22 or lower.
The bearish scenario stands in stark contrast to recent network activity. The Cardano Foundation announced a DeFi deployment weeks ago, adding eight-figure ADA liquidity into decentralized exchanges. Despite this fundamental development, the price chart has not reacted, highlighting a gap between network activity and market sentiment.
Analysts describe the current position as a 'make-or-break moment' for ADA. On the upside, a confirmed reversal from this support zone would open resistance clusters between $1.33 and $2.00, with a full recovery scenario targeting $2.65 and beyond. For now, however, the chart demands proof rather than hope.
