Cardano’s native cryptocurrency, ADA, has seen a volatile week, slipping 12% after a strong rebound at the start of October. The token climbed to a five-month high near $0.28 but has since dropped below $0.22. Analysts are closely watching key levels and recent price predictions to gauge the next move.
X user Sssebi noted that ADA has been trading below the 200-day moving average for over a year but suggested it could now bounce off this level to confirm a bullish trend reversal. The analyst highlighted that ADA closed the daily candle above the 200 MA, with a “big bounce” depending on trading volume. Crypto With Gopal and Trend Rider also weighed in, with the former identifying a falling wedge pattern and buyers defending the $0.21 mark. A breakout above $0.23 resistance could push ADA towards $0.25, according to the analyst.
Trend Rider emphasized that ADA has maintained a price floor, briefly cracked this summer when the price plunged to about $0.14. The analyst believes a monthly close above $0.23 would confirm the floor’s reclamation, while a rejection would turn old support into resistance. ADA’s recent exchange netflow supports the bullish perspective, with outflows surpassing inflows, indicating reduced selling pressure.
However, not all analysts are optimistic. Ali Martinez outlined several bearish factors, including whales offloading over 110 million ADA in about five days and cooling network activity, with daily active addresses down more than 40%. Martinez argued that a breakdown below $0.24 could lead to a drop to the channel floor at $0.21. X user Crypto Million described ADA’s performance as “weak” and regretted canceling their short position.