Analysts Warn: Cardano (ADA) Could Plunge Deeper Before Spectacular $1 Rebound Following 12% Crash
Cardano bulls are sweating as technical indicators flash red across the board.
The Reality Check
ADA's recent 12% nosedive has traders questioning whether this is just profit-taking or the start of something uglier. Market veterans are pointing to weakening support levels and declining trading volume—classic signs that more pain might be coming.The Silver Lining
Here's where it gets interesting: every major analyst agrees ADA will eventually hit $1. The debate isn't if, but when. Some see this dip as the perfect accumulation zone before the next leg up. Others warn we could see another 15-20% drop before the real rebound begins.The Bottom Line
Cardano's fundamentals remain strong—development activity continues at breakneck speed, and institutional interest keeps growing. But in crypto, fundamentals sometimes take a backseat to market sentiment and trader psychology. Remember when traditional finance types said crypto was dead? Now they're the ones FOMO-ing in during every dip.Whale Flows Split as ADA Loses Support
Santiment-tracked wallets holding 1–10 million ADA offloaded about 40 million ADA over seven days, while broader whale distribution reportedly reached 350 million ADA, pressuring price. other big wallets accumulated 140–200 million ADA, creating a split tape that’s fueling choppy consolidation between $0.65–$0.70.
Derivatives add to the cautious tone. Cardano’s open interest slipped 2.12% to $669.9 million, and long liquidations ($1.13 million) dwarfed shorts ($187,000), signaling bulls bore the brunt of the latest flush.
On the 4-hour chart, ADA is carving a falling wedge, but confirmation requires a breakout above $0.74. Until then, momentum indicators remain mixed: RSI 37 (approaching oversold) while CMF 0.12–0.15 hints at returning spot inflows that have yet to overpower supply from large holders.
Downside Risk First, Rebound Later
Technicians flag a “risk-first” path: losing $0.66 puts $0.65 in play; failure there opens $0.62–$0.60, then $0.57 (channel/structure confluence). A deeper shakeout could probe $0.53 if broader crypto weakness persists.
On the upside, ADA must reclaim $0.66 and then clear $0.74–$0.80 (50-day EMA cluster) to flip trend strength. Above that range, bulls target $0.86, with a psychological $1.00 retest feasible into Q4 if risk appetite and flows improve.
Several analysts still eye a path toward $1.20–$1.60 on a confirmed breakout, but most caution the market may dip before it rips given leverage resets and uneven liquidity.
ETF headlines (including the Oct. 23 Grayscale ADA ETF decision window), stablecoin and ETF net flows, and whether whale selling cools. A rotation back into altcoins typically follows BTC stabilization; conversely, renewed BTC downside WOULD likely extend ADA’s consolidation near the lows.
Treasury, Staking, and Ecosystem Still Build
Beyond price, Cardano’s community treasury has surpassed 1.6 billion ADA ($1 billion), funded by fees and staking rewards and governed via Project Catalyst, a war chest that supports tooling, DeFi, and infrastructure without VC overhang.
New staking access (e.g., eToro U.S.) and ongoing initiatives like Midnight and Leios continue to broaden the roadmap, even as TVL ($288 million) lags larger chains.
Cover image from ChatGPT, ADAUSD on Tradingview
