Cardano Price Near Accumulation Zone After 93% Drop: Is a Base Forming?

Key Insights:

• Analysts put Cardano’s price in a long-term accumulation range after a sharp drawdown.
• Holding above $0.18 keeps the bullish structure intact on higher timeframes.
• Weekly support near $0.249 now serves as the key level for near-term direction.

Cardano price came back into focus as analysts weighed whether the recent pullback represents a reset or a deeper correction. ADA price rebounded from recent lows around $0.24. Also, at press time, it was trading around $0.26 after a huge volatility.

The move came after a larger shakeout of the crypto market in general that forced weak hands out of risk positions. Meanwhile, analysts now point to overlapping technical zones that may define ADA’s next major move.

Analyst Maps Accumulation of ADA after Cardano Price Correction

Crypto analyst Crypto Patel provided a high-timeframe view. That highlighted the Cardano price trading inside a bullish order block. According to the analysis, the ADA price has corrected about 93% from its old cycle high.

This has put it deep into historical accumulation territory. The strength of the pullback was also a local 78% correction from recent highs over the past 6 months.

The chart showed a critical range of accumulation between $0.18 and $0.13. That zone is in line with previous demand zones where long-term buyers intervened.

Cardano price remains structurally bullish. Crypto Patel noted it holds that outlook as long as it stays above $0.18 on higher time frames. A loss of that level would shift the bias toward deeper downside.

The wider structure is suggestive of positioning as opposed to momentum chasing. Price action is the action of absorption, not panic selling. This behavior is often seen late in corrective phases, particularly after prolonged drawdowns.

Long-term Expansion Targets

More so, Crypto Patel also pointed to the longer-term levels of expansion that are oriented towards historical cycles. The analysis referred to ADA’s previous bull run, where the price expanded by over 3,400% from accumulation zones.

Projected expansion targets using that framework reach $1.20, $3.00, and $5.00. These levels mark potential milestones across a full market cycle.

The reclaim zone around $0.47 was marked as a trend confirmation zone. A move above that level on a sustained basis would signal renewed bullish structure. Until then ADA price is still in a base-building phase rather than a confirmed uptrend.

The risk management aspect was highlighted in the analysis. A close below $0.13 per week would nullify the accumulation thesis. Until such a breakdown occurs, the structure favors gradual positioning and not aggressive entries.

Fibonacci Levels Outline Downside and Recovery Paths

Another layer of analysis came from Man of Bitcoin, who focused on Fibonacci retracement levels. As the chart shows, the Cardano price recently repeated the 50% retracement zone around $0.24. That level often serves as a decision point on corrective waves.

The analysis suggested that holding above the last swing low would keep the larger ABC correction intact. A strong break below that swing low would make a deeper retracement towards the 61.8% and 78.6% levels more likely. Those zones are located close to $0.13 and $0.055, respectively.

ADA price has stabilized in the short term. The price is moving sideways, holding away from the 50% mark. However, confirmation needs follow-through and higher closes. Without that, price risks remain range-bound.

Weekly Support Levels Set Cardano Risk Zones

Ali Charts shared a simplified weekly structure for Cardano. The chart highlights key support levels and shows Cardano price trading near the bottom of its range.

The chart set out three large support zones at $0.249, $0.115, and $0.053. These levels are areas of historical significance where the price previously consolidated or reversed.

ADA price is currently trading just above the first support near $0.249. That makes the level critical in the short-term direction. Holding above it preserves the possibility of higher time frame accumulation. A loss would reveal the downside zone closer to $0.115.

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