Cardano, on the verge of breaking the floor...Experts "Potential retreat to $0.2"

▲ Cardano (ADA)/ChatGPT generated image

Cardano (ADA) is at a critical juncture, retesting a major support level on the monthly chart.

According to a report by virtual asset specialized media The Crypto Basic on April 28 (local time), Cardano is currently moving precariously above a strong price defense line. Analysts diagnose that whether this support line is maintained will be a key variable determining the trend for the next few months. In the past, Cardano initiated a strong rebound in this section, bringing significant profits to investors. However, this time, there is concern about the defense of the support line due to the lack of accompanying trading volume.

Currently, Cardano's price continues to struggle around the $0.25 mark. Technical analysts point to the $0.23 line as the last stronghold. If this price breaks, there is a high risk of a psychological support line collapse and additional sell-offs. Conversely, if the support line is successfully defended, it will lay the groundwork for a short-term recovery to $0.30. Investors are closely watching where the monthly closing price will form.

The bullish scenario assumes a rapid influx of buying power. To break through the downtrend line, much higher trading volume than at present must support it. The Relative Strength Index (RSI) is approaching the oversold zone, hinting at the possibility of a technical rebound. However, macroeconomic uncertainties act as a factor preventing capital inflow. It is positive that the activity of the Cardano ecosystem has been consistently maintained even in a bear market.

If the bearish scenario materializes, Cardano will be pushed down to the bottom of its long-term trading range. Experts warn that the price could retreat to the $0.20 mark. This is expected to be a painful period for long-term investors. Currently, the proportion of short positions in the futures market is increasing, intensifying downward pressure. Volatility near the support line has entered a stage that tests investors' patience.

Cardano has now reached its technical limit and is facing a pivotal week. No changes in the positions of major institutional investors have yet been detected. The market is synchronizing with Bitcoin's flow, awaiting Cardano's independent rebound signal. This retest of the support line is serving as a testbed to simultaneously measure Cardano's technical value and market confidence.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*