Cardano (ADA) Under Pressure, Having Lost Nearly 50% of Its Value From a Peak Late Last Year

After peaking near $1.30 in December 2024, the token has shed nearly half its value, now trading around $0.65, according to CoinGecko data.

Cardano’s ADA is trading at a critical juncture as it approaches the apex of its descending channel, potentially setting up a move toward $0.63, or even $0.54 if the pressure persists.

The technical analyst, Ali Martinez, has highlighted the importance of this breakout level for ADA. According to him, if the token fails to break out, we can expect to see further declines.

"The apex of the channel coincides with the Fib level, indicating substantial confluence for a potential reversal point. If the sellers manage to overwhelm the buyers, we can anticipate a drop to $0.63. However, if the selling pressure intensifies, we may even see a continuation to $0.54."

The Cardano development team continues to introduce upgrades, and the community is actively engaged in various projects.

Moreover, the SEC is increasingly likely to approve an ADA spot ETF later this year, with analysts assigning a 75% chance. Additionally, we’re seeing a lot more altcoin-based ETFs, including for popular currencies like Binance Coin (BNB), Sui Network (SUI), and of course, Ripple’s XRP.

As for the bullish pattern that Martinez spotted, it relates to a triple bottom formation, which usually occurs at the lower portion of a major trend and tends to be quite bullish.

If ADA manages to break above the $0.74 resistance zone, it could go above the $0.88 level and above.

Also, retail traders are closely following the coin’s RSI, which has climbed above 58, suggesting underlying strength. However, traders should remain cautious, as anything can happen in the crypto world.

Other analysts remain bullish, with Cardano’s founder recently predicting the price of ADA will reach $10.