- Cardano (ADA) is holding above a key support level at $0.65, but a drop below $0.615 could trigger a sharp 30% decline.
- Cardano’s on-chain data suggests investors are accumulating despite bearish market sentiment, with $2.10 million worth of ADA flowing out of exchanges.
Cardano’s native token, ADA, has reached a critical level, with traders eyeing its next move. The cryptocurrency market is currently reacting to the recent reciprocating tariff announcement by U.S. President Donald Trump on April 2, 2025, which has introduced uncertainty into the broader financial landscape.
At press time, Cardano is trading near $0.65, showing only a modest gain of 0.60% over the past 24 hours. However, a sharp 30% decline in trading volume suggests weakening market participation, potentially due to investor caution over further downside risks.
Price Action and Technical Analysis
Following the tariff news, ADA experienced an initial drop but managed to hold above a key support level. On the daily chart, ADA has formed a bullish hammer-type candlestick at the $0.65 support, hinting at a possible reversal to the upside.
Despite this short-term bullish signal, Cardano remains in a strong downtrend, trading below the critical 200-day Exponential Moving Average (EMA). If the token fails to hold the $0.65 support and closes below the $0.615 level, a significant 30% drop to $0.45 could be on the horizon.
Bullish On-Chain Signals
While price action appears bearish, on-chain data suggests that investors are taking advantage of the dip. According to analytics firm Coinglass, exchanges have witnessed an outflow of $2.10 million worth of ADA in the last 24 hours, signaling potential accumulation by long-term holders.
Meanwhile, short-term traders remain bearish, placing heavy bets against ADA’s price. This conflicting sentiment between traders and investors adds to the market’s uncertainty.
Cardano: What’s Next for ADA?
Cardano is at a pivotal moment. If bullish momentum builds from the current support level, ADA could reverse its downtrend and rally. However, failure to hold above $0.615 could lead to a steep decline. Traders should watch for confirmation signals before making any moves in this volatile environment.
