Cardano's ADA Faces 3% Drop, Hovers Near $0.70

Cardano's native token, ADA, is currently facing significant resistance from the 200 Exponential Moving Average (EMA) on the daily timeframe, hovering around the $0.75 mark. Over the past four days, ADA has struggled to surpass this resistance level, indicating a challenging environment for bullish movements. At the time of reporting, ADA is trading near $0.70, reflecting a 3% price drop in the last 24 hours. This decline is accompanied by a 10% reduction in trading volume, suggesting diminished participation from traders and investors compared to the previous day.

Technical analysis reveals that ADA is currently near a critical support zone at $0.68 and $0.65, with $0.75 acting as a strong resistance level. If ADA manages to breach the 200 EMA and close a daily candle above the $0.75 level, there is a strong possibility it could surge by 50% to reach the $1.13 mark. To achieve this target, ADA must first overcome a mild resistance level at $0.85. Conversely, if the asset falls below the $0.68 level, it could decline by 10% to reach $0.62 in the coming days.

Despite the mixed sentiment, traders appear bullish on ADA, with significant over-leveraging at $0.685 on the lower side, amounting to $15 million worth of long positions. Additionally, $0.714 is another over-leveraged level, where traders have built $5 million worth of short positions. Combining these on-chain metrics with technical analysis suggests that bulls are currently dominating the asset and could potentially breach the ongoing hurdle.

Looking ahead to March 14, predictions suggest that ADA could see a price range between $0.6955 and $0.8001. This range indicates potential for both bullish and bearish movements, with the price potentially stabilizing around $0.7478. The volatility in the market has led to varied opinions, with some analysts predicting a 13.85% increase in the next five days, targeting a price of $0.802466 per ADA. However, others remain cautious, noting that the price could decline to $0.50 due to broader market conditions and the potential impact of the US Federal Reserve's rate decisions.

The broader trend for Cardano shows resilience, with an 8.1% gain over the past 14 days and a 5.9% increase over the past month. Despite a recent 21.6% weekly decline, the token has shown signs of recovery, with a 1.7% gain in the last hour and a 1.8% increase over the past day. This recovery has led to speculation about a potential breakout, with chart analysis revealing a "Cup and Handle" pattern. This pattern suggests that once the resistance at $3.23 is breached, ADA could see a significant price surge, potentially reaching $9.33.

On-chain metrics and whale accumulation also play a crucial role in the price prediction. Whales have accumulated 180 million ADA tokens in the previous week, increasing their total holdings to 6 billion tokens for wallets containing 1 million to 10 million ADA. This accumulation, coupled with a 4.79% increase in new addresses and an 11.99% rise in active addresses, indicates heightened user engagement and potential upward price momentum.

In the long term, market analysts predict that Cardano will not fall below $0.712 in March 2025, with a chance of peaking at $0.828 in the same month. This prediction aligns with the broader bullish sentiment surrounding the token, which is expected to rise to $3.50 following the launch of new revenue-generating token redistribution mechanisms. The potential for a 350% breakout, provided ADA remains at the crucial support level around $0.38, further adds to the optimism surrounding the token's future price movements.