Cardano (ADA) Price Prediction: Will the Dip Turn into a Breakout?

This comes as the crypto market also turns red, with Bitcoin, Ethereum, and XRP facing similar declines following a slow weekend.

The price of Cardano (ADA) dropped further on Monday, extending losses that began after the cryptocurrency failed to break through a key resistance level last week.

Here's a look at the technical levels to watch, the macroeconomic backdrop, and what crypto analysts are saying about ADA.

Cardano Price Drops Further As Fed Chair Comments Loom

The world's ninth-largest cryptocurrency was trading at around $0.62 on Monday morning, down about 3% over the last 24 hours. This comes as the crypto market also turns red, with Bitcoin, Ethereum, and XRP facing similar declines following a slow weekend.

Despite the dip, there are signs of possible upside. Crypto analysts point out that large investors, so-called "whales," accumulated over 410 million ADA in April. A statistic some see as bullish. According to Crypto Capital Venture, ADA is in a similar position to previous cycles where it dipped before a strong breakout.

ADA’s Next Technical Hurdles

At present, Cardano is still stuck under an important resistance level at $0.77. It tried to push higher last week but couldn't quite manage to hold above this technical setpoint, ultimately leading to a setback.

If there is any support to watch on the downside, it is the $0.67 area, which could lead to a bounce if reached. But for a real bullish turn, Cardano needs to break through the $0.77 resistance decisively and then continue to rally towards $0.80.

What happens next for ADA likely hinges on the broader market, especially upcoming comments from the U.S. Federal Reserve Chair Jerome Powell, as well as possible changes in monetary policy.

If economic news is favorable, ADA could begin a larger breakout, possibly aiming for $1.25 in the longer term.

Still Waiting on Altcoin Season?

Looking at the bigger picture, the market isn't quite ready for a full-blown altcoin rally yet. The CMC Altcoin Season Index shows that the market is still in “Bitcoin Season,” with a current score of 26 (upon 100). That’s better than last month’s 16, but still a long way from the 75 needed to declare “Altcoin Season.”

This means capital continues to flow mainly into Bitcoin. Although altcoins are slowly recovering, momentum remains weak. Analysts suggest Bitcoin dominance could still rise to around 70% before falling again.

However, there are positive signs for altcoins building in the background. Global liquidity is also rising, a trend that has supported past crypto bull markets. Combined with mounting pressure for U.S. interest rate cuts, and a neutral-to-bearish market sentiment, several indicators point to a favorable setup for altcoins in the coming months.