• Cardano (ADA) is testing a crucial support level, with market sentiment leaning bearish after recent gains.
• If ADA holds above support, bullish momentum could return, pushing the price toward the $1.27 upside target.
• A breakout above resistance zones may re-establish ADA as one of the stronger-performing altcoins in this cycle.

Cardano (ADA) is moving under a bearish phase, with market conditions signaling a potential drop in its price due to market uncertainty after the recent surge. Now, the market is slightly bearish, and several major altcoins are experiencing downward momentum along with Bitcoin.

At the time of writing, ADA is trading at $0.8553 with a 24-hour trading volume of $2.46 billion and a market capitalization of $2.46 billion. The ADA price over the last 24 hours is down by 7.03%, and over the last week it is also down by 6.98%.

Source: CoinMarketCap

Also Read: Cardano Price Surges 8%: Will ADA Hit $1 Soon?

Cardano (ADA) Price Shows Strength with $1.27 in Sight

Moreover, the crypto analyst CryptoPulse highlighted that Cardano (ADA) is currently at a crossroads in terms of its price action as it tries to consolidate within persistent bearish market conditions. After recovering an important level of support, the token is now retesting it.

If the trend shifts toward further downside or paves the way towards renewed upside progress. The outcome of this test will be crucial in shaping ADA’s short-term trajectory and could set the tone for its performance in the weeks ahead.

As long as ADA remains above this support, bulls will be eyeing key Fibonacci levels for possible targets. The 0.382 Fib level comes in at $1.01, the 0.5 Fib at $1.14, and the 0.618 Fib comes in at $1.27. 

Source: X

A continued push towards these areas would fortify the odds on a bullish continuation, with the buying resuming after weeks of downside pressure. This would also solidify ADA as being one of the better-performing altcoins within the ongoing market cycle.

On the other hand, a breakdown below the recovered support would bring ADA back into bearish control, potentially compelling the token to retest the range lows. This sort of breakdown would wipe the recent gains and confirm the market’s overall cautious sentiment, particularly since Bitcoin and other large cryptocurrencies remain struggling to breach resistance levels. 

This situation may lead to the renewed selling scale, shifting the attention of the traders to the defensive tactics alongside short-term downward targets.

Also Read: ADA Price Must Reclaim $0.90 to Reverse Bearish Momentum