ADA slips below a critical threshold! What are analysts saying about the next move?

Cardano’s native token ADA has broken below its crucial support zone between $0.19 and $0.20, plunging to levels unseen since 2020. This sharp drop has intensified immediate selling pressure, with buyers showing limited interest at these new lows.

Short-term barriers take center stage

Technical analyst Ali Charts identified a TD Sequential buy signal on the daily chart, a pattern that typically points to a brief rebound after prolonged declines. However, Ali warns that any such recovery in ADA might not have lasting momentum.

According to the analyst, ADA’s first challenge in any recovery attempt would be overcoming resistance in the $0.160 to $0.176 range. Should the price be rejected near $0.176, it would further cement sellers’ control over the market.

Currently, ADA is changing hands within a demand zone between $0.14 and $0.16 on the weekly chart—a region that has historically attracted buying. If this band fails to hold, the next significant support is expected between $0.08 and $0.10.

The relative strength index (RSI) on the weekly chart has entered oversold territory. While this could signal some exhaustion in the selling trend, the overall technical outlook for ADA is seen as bearish unless it can reclaim the $0.19 level.

Optimism lingers for long-term projections

Despite the present downtrend, some analysts remain optimistic about ADA’s long-term prospects. TraderaEdge, for instance, projects that the current market cycle could deliver up to 5x returns from these levels. Their analysis, based on a long-term resistance line, points to an upside target near $0.50 in 2028.

Cardano is widely recognized as a Layer 1 blockchain network offering smart contract support. Its native token ADA is used for transaction fees, staking, and various ecosystem utilities.

Market sentiment has also been weighed down by a recent security breach affecting the SecondFi wallet (previously operated under the Yoroi brand). Reports indicate that about 129 million ADA, equivalent to roughly $20 million, was compromised. The Cardano community has emphasized that the issue originated in the wallet software, and not the blockchain itself.

On-chain data hints at growth despite price weakness

Notably, Cardano’s network data paints a rosier picture than its price charts. The number of daily active users on the network has skyrocketed by more than 1.992% in the past six months, with marked spikes at the start and end of June.

Cardano is also among the top networks in terms of developer activity. Everstake reports that 774 code updates were recorded in the last 30 days, positioning Cardano seventh among Layer 1 chains and accounting for approximately 3.7% of overall development output.

As of publication, ADA is still trading within its $0.14 to $0.16 demand zone, with immediate resistance at $0.176 remaining in focus.

The post ADA slips below a critical threshold! What are analysts saying about the next move? appeared first on COINTURK NEWS.