Cardano (ADA) Holds at $0.54: Will It Rebound or Break Down?

Cardano (ADA) has traded between $0.529 and $0.611 after hitting a low of $0.51 on June 22. The altcoin is currently in a consolidation phase, with traders closely watching the $0.54 level—a zone many see as critical support. According to on-chain analyst Ali, a dip to $0.54 could present a strong buying opportunity. This price point is considered an accumulation zone where demand could spike, potentially leading to a rebound.

ADA has already bounced off the $0.54 level recently, rallying to $0.611 on July 3 before facing resistance. At the time of writing, Cardano is trading at $0.585, up 2.19% over the past 24 hours, in line with a modest recovery in the broader crypto market. Over $71 million in short positions have been liquidated, further fueling bullish sentiment. However, macroeconomic concerns and Bitcoin's stagnant price action continue to weigh on altcoins like ADA.

If Cardano fails to hold the $0.54 support, the next key level is $0.50. A drop below this could complete a descending triangle pattern, potentially triggering a further slide toward $0.40. On the flip side, if bulls can push ADA above $0.61, the token could rally to the 50-day simple moving average at $0.67 and possibly reach the 200-day SMA at $0.758. A break above these levels would indicate a possible trend reversal and renewed bullish momentum.

Traders are advised to watch ADA’s movement around the $0.54 level closely, as it may dictate Cardano’s short-term direction.