Cardano's price has stagnated in a narrow trading range for the past ten days, even as online sentiment toward the cryptocurrency improves. Technical analysts suggest the digital asset could soon retest local resistance levels if it maintains support at a critical threshold.
ADA, Cardano's native token, has retraced 40% from its two-month high of $1.17, settling into the $0.70 range in recent weeks. The cryptocurrency experienced an 80% surge on March 2 following U.S. President Donald Trump's announcement of a "Crypto Strategic Reserve" that included Cardano among other digital assets. This announcement propelled the token to its highest price point in months.
After this significant rally, the altcoin pulled back to approximately $0.90, briefly stabilizing in this zone. The stability proved short-lived, however, as the March 6 executive order establishing a Strategic Bitcoin Reserve and a "Digital Asset Stockpile" pushed ADA below this crucial level.
David Sacks, the White House's Crypto Czar, later clarified that Cardano and other mentioned altcoins were merely referenced as examples of leading cryptocurrencies in the market. This clarification did little to reverse the price decline.
Since these developments, Cardano has traded sideways between $0.68 and $0.75. The token briefly touched $0.64 during the March 11 market downturn before recovering slightly. Despite this lackluster price action, sentiment toward ADA has remained largely positive throughout the week.
On-chain analytics firm Santiment reported Tuesday that Cardano experienced exceptionally positive sentiment across social media platforms. This bullish outlook was largely driven by the Securities and Exchange Commission's classification of ADA's use case as "smart contracts for government services." According to Santiment, this development "pushed bullishness to its highest rate in over 4 months." Additionally, large investors have demonstrated confidence in Cardano, with whale addresses acquiring approximately 190 million ADA tokens within the past 48 hours.
Cardano has been declining since December 2024, when it reached a three-year high of $1.32. February's market correction drove the cryptocurrency below several important support zones, leaving it fluctuating between $0.60 and $0.80.
Analyst Sjuul from AltCryptoGems described ADA as having "a weird-looking chart, mainly due to the announcement of the strategic reserve." He identified $0.66 as Cardano's most critical support level, warning that failing to hold this threshold could send the token to monthly lows. "That level should hold; otherwise, all this recent price action will result in a distribution phase," Sjuul cautioned. The analyst previously noted that Cardano's chart displayed a "Power of 3" formation, indicating the cryptocurrency was entering the third phase of this pattern.
The Power of 3 pattern divides price cycles into three distinct phases: accumulation, manipulation, and distribution. During the final distribution phase, a strong price breakout typically occurs, with momentum building in the direction opposite to the manipulation phase. Based on this analysis, if ADA falls below the $0.66 mark, the token could experience a significant price correction.
A pseudonymous trader offered a contrasting view, noting that the altcoin shows "a bullish reversal after breaking out of a falling wedge pattern." According to this analysis, Cardano could enter a strong uptrend if it maintains its current momentum. The trader emphasized that ADA must "hold the current support levels and break above the local resistance for confirmation of further bullish continuation" toward a $1.22 target.
Analyst Ali Martinez provided additional perspective, observing that ADA currently trades within a right-angled descending wedge formation, with the upper trendline situated at $1.15. Martinez suggested that a daily close above this $1.15 resistance level would likely propel ADA's price toward the $2 mark, a price point not witnessed since 2021.