Cardano Plunges to $0.795—But Traders See a $1.60 Mega-Breakout Looming

Cardano takes a nosedive—but the smart money's already betting on the rebound.

### Blood in the Streets, Greed on the Charts

The eighth-largest crypto just flashed its weakest price since the last bear market, cratering to $0.795 as overleveraged retail traders hit panic sells. Meanwhile, institutional desks are quietly accumulating ADA contracts at levels not seen since the 2024 halving frenzy.

### The $1.60 Line in the Sand

Technical analysts point to a make-or-break resistance zone at $1.60—a level that could trigger algorithmic buying cascades if breached. 'This isn't about fundamentals anymore,' quips one hedge fund quant while adjusting his yacht's autopilot. 'It's about catching the gamma squeeze before the next VC dump.'

As always in crypto: the bigger the drop, the louder the 'buy the dip' chorus gets—until the music stops.

Price Movement and Technical Pattern

The recent dip in ADA’s price has not discouraged market analysts. Instead, it has drawn attention to a technical setup that could lead to a bullish breakout. According to several crypto traders, ADA is currently trading within a symmetrical triangle—a chart pattern that typically forms when the price is consolidating before a major move. If ADA breaks above the resistance level of this triangle, analysts believe the price could rise toward the $1.40 to $1.60 range.

Crypto analyst “Crypto King” noted that ADA is nearing a critical resistance zone. He explained that if buyers gain control and successfully push the price above this level, it could trigger a strong upward trend. “The structure is still bullish as long as we stay above key support,” he said. “If we break resistance, ADA can climb quickly.”

Founder’s Optimism on Long-Term Growth

Charles Hoskinson, the founder of Cardano, recently shared his long-term view on ADA, expressing confidence in the project’s potential. He believes ADA could outperform Bitcoin in terms of percentage gains over time. His reasoning centers around Cardano’s focus on scalability and utility—two key factors he says will drive its adoption and price growth in the years ahead.

Hoskinson pointed out that while Bitcoin is often viewed as digital gold, Cardano is designed to support smart contracts and decentralized applications, which give it broader real-world use cases. “ADA’s technology and design give it long-term strength,” he said in a recent statement. “As the market matures, we expect Cardano to shine.”

Liquidation of Leveraged Long Positions

Another key development in the past few days has been the liquidation of over $6 million worth of Leveraged long positions in ADA. These liquidations occurred as the price dropped and traders using high leverage were forced to exit their positions. While this might sound negative at first, analysts say it could actually be beneficial in the short term.

When highly leveraged positions are wiped out, it reduces the risk of sudden forced selling in the market. This, in turn, may help stabilize the price and create a healthier foundation for a future rally. According to analysts, the clearing out of excessive leverage means that if ADA starts moving up again, the momentum could be more sustainable.

What to Watch Next

Currently, ADA is still trading within the boundaries of the symmetrical triangle pattern. The key level to watch is the resistance line at the top of the triangle. If the price breaks above this resistance with strong volume, it WOULD confirm a bullish breakout, and traders could expect a quick rise toward $1.40 or even $1.60.

On the other hand, if ADA fails to break out and instead drops below the support level of the triangle, it could signal a continuation of the downtrend. In that case, the price might revisit lower levels as selling pressure increases. For now, the market remains in a wait-and-see mode.

Traders and investors are keeping a close eye on price action and market sentiment. The next few days will be crucial in determining whether ADA breaks out to the upside or remains stuck in a consolidation phase.

Conclusion

Cardano’s ADA may be facing short-term price pressure, but the bigger picture remains potentially bullish. The current triangle pattern on the chart indicates that a major MOVE is likely coming soon. If buyers can push the price above resistance, a rally toward $1.60 is on the table. Long-term confidence from the project’s founder, along with reduced leverage in the market, could help support this breakout.

Still, traders should be cautious and look for confirmation before jumping into any position. Volatility remains high, and as always in the crypto market, things can change quickly. For now, ADA’s next move will depend on whether it can overcome key resistance and start a fresh bullish trend.