Cardano is holding above a crucial long-term support level and looks good for a long entry as long as it stays above it.
Despite the broader market dip, Cardano (ADA) has been trading above this crucial support level, providing a basis for a recovery if the trend continues. Moreover, the recent dip is part of a broader ABC formation, with Cardano in corrective wave 3.
Key Points
- Cardano is holding above a key long-term support level and looks good for entry as long as it stays above it.
- From a technical analysis standpoint, ADA is only following an ABC structure formation in the monthly chart.
- Cardano started this formation in December 2024 when it rallied to a high of $1.326 and corrected.
- Since the August 2025 high, ADA has been in a downtrend, consistent with corrective wave C in the ABC pattern.
- The coin provides a good risk-to-reward ratio for long entries as long as it holds above the $0.241 support zone.
Cardano and the ABC Structure
Notably, Cardano has exhibited price weakness in the past few weeks. While its price has increased by 4.30% since this week, the 11th largest cryptocurrency by market cap has retraced by 25% in the past month, following a broader market trend.
However, from a technical analysis standpoint, ADA is only following an ABC structure formation in the monthly chart. The current downtrend aligns with wave 3, which, according to financial trader Mathew Dixon, is corrective.
An accompanying chart shows that Cardano started this formation in December 2024 when it rallied to a high of $1.326. The first wave was corrective, pushing the cryptocurrency to a low of $0.511 in April 2025.
Cardano ABC Pattern/DixonWhat followed was a rebound in wave 2, which took prices to the August 2025 high of $1.019. Since then, ADA has been on a downtrend, aligning with the corrective wave C in the ABC pattern.
Cardano Holds Key Support Level
The analyst sees holding this support as a sign of higher ADA prices. According to him, the coin provides a good risk-to-reward ratio for long entries as long as it holds above this zone. However, he did not mention any targets for Cardano if it does trend higher from here.
Caveats to Note
While Dixon is optimistic about Cardano’s recovery, he noted that things could quickly turn bad if it falls below the $0.241 support level. He called this scenario a “serious concern” for the asset’s near-term trajectory.
As a result, his analysis does not provide certainty that the coin will reverse the prevailing bearishness. His optimistic view hinges on how Cardano reacts to this support, which it has so far held nicely. However, a further pullback from the broader crypto market could threaten this setup and prolong the corrective wave 3.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
HYPE Hits $35.53 After 2.4% Jump — Will Momentum Hold as Price Tests $35.59 Resistance?
Hyperliquid’s HYPE trades at $35.53, approaching the $35.59 resistance after a 2.4% daily gain.
The chart shows the $33.67 zone acting as support after price moved above a previously contested level.
Price now trades between $33.67 support and $35.59 resistance, shaping the immediate
CryptoNewsLand37m ago
Is Injective (INJ) a Dead Coin or the Next 2800% Opportunity? Here’s What The Chart Is Saying
The Injective price has fallen sharply from its previous all-time high, leading some traders to question whether the project has lost its momentum.
However, a recent technical analysis shared by top analyst Crypto Patel suggests that the recent decline may actually represent a typical
CaptainAltcoin1h ago
CFX 4-hour chart reaches a new high for the phase, with approximately 14% increase over 24 hours
Gate News: On March 15, market data shows that CFX reached a new phase high on the 4-hour K-line chart, with prices touching approximately 0.06282 USDT at their peak, representing a 24-hour gain of around 14%. Some community members believe this rally may be related to recent macroeconomic catalysts. Earlier, media outlets citing sources reported that Iran is considering allowing certain tankers to pass through the Strait of Hormuz on the condition that petroleum transport be settled in Chinese yuan. Related discussions have once again sparked market attention toward yuan stablecoins and cross-border payment narratives.
GateNews2h ago
After the network upgrade: What prospects await SOL?
The official approval of protocol SIMD-0266 aims to optimize computing efficiency on the Solana network by introducing p-tokens, simplifying transaction processing. This upgrade, set for April, has prompted increased buying activity and could lead to significant cost reductions and performance improvements.
TapChiBitcoin3h ago
Track FET's journey to the $0.24 milestone as the AI cryptocurrency sector records its most positive trading week in months
The cryptocurrency industry related to AI has recently recorded an impressive performance. According to data from CoinMarketCap, the total market capitalization of this sector has grown 16% in just the past week. Many leading tokens in this category have also achieved significant growth, attracting
TapChiBitcoin4h ago
DeFi enters a "winter of yields": liquidity stagnation, leverage contraction, and the disappearance of arbitrage opportunities
Since September 2025, the DeFi market has entered a "interest rate winter," with the annualized deposit yields of mainstream stablecoins dropping to lows, and supply and demand imbalances causing excess liquidity. As borrowing demand declines, stablecoin lending rates have also decreased, and the reduced risk appetite in the crypto market has led investors to shift toward more stable assets. Some protocols, such as Sky, offer stable returns through real-world assets, but the overall trend still indicates a period of adjustment and structural reform in DeFi.
区块客4h ago
