Cardano's Potential Recovery? Key Support Level Under Observation
Cardano (ADA) is currently positioned near a crucial support line, sparking interest among analysts for the next potential market move.
Cardano (ADA) is trading just above a critical support level, leading analysts to speculate about a possible accumulation phase. Despite an overall weak trend, some chart structures and technical indicators are gaining attention.
Support Level Near $0.54 Gains Attention
Cardano has been on a downward trajectory since facing resistance in the range of $0.75–$0.79. Currently priced at $0.65, it shows a slight recovery from recent lows but remains in a bearish trend. On the 12-hour chart, the asset finds itself near significant short-term support.
Analyst Ali Martinez highlighted that the $0.54 level could be pivotal for buyers.
“$0.54 could represent a major buy zone for Cardano [ADA]! pic.twitter.com/NWcdmjA5Io”
— Ali (@ali_charts) October 23, 2025
This level has previously acted as support and might once again draw market interest. A chart projection indicates short-term consolidation around the $0.54 mark, with the possibility of a rebound towards $0.60.
An additional chart from Bitcoinsensus indicates that ADA has been moving within a long-term compression channel over the years, adhering to both its lower and upper limits. Historically, tests of the lower band have often resulted in significant upward rebounds.
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In previous scenarios, ADA has demonstrated gains of approximately 200% to 300% after contacting the lower trendline, hinting that future moves could aim for upper resistance near $2.70. According to the chart’s upper bounds, “Next target comes in at $2.70 per ADA.”
EMA and MACD Still Bearish, But Weakness Slows
On the daily chart, ADA continues to operate beneath the 20, 50, 100, and 200-day exponential moving averages, which remain above the current price, ranging from $0.69 to $0.77. Until ADA manages to surpass these levels, the momentum remains broadly negative.
Currently, the MACD suggests early signs of stabilizing, with the MACD line and the signal line converging, while the histogram hovers near zero, which could indicate a reduction in bearish momentum, albeit without any bullish crossover present yet.
Open Interest Declines With Price
Cardano’s futures open interest has declined to $677 million from over $1.8 billion earlier this year, indicating reduced speculative engagement as the price stabilization occurs. In previous cycles, an increase in open interest typically correlated with more robust rallies, like those witnessed in July and August.
Significant ADA holders have also adjusted their holdings; as reported by CryptoPotato, those holding between 100 million and 1 billion ADA sold off 350 million tokens recently, which might account for some continued selling pressure and less active market positioning.
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