Date: Thu, February 27, 2025 | 05:30 AM GMT
The cryptocurrency market remains in a corrective phase, with the downturn extending into February after the November rally lost momentum. Several recent events, including President Donald Trump’s new tariffs and the Bybit hack, have fueled additional volatility.
Amid this uncertainty, Cardano (ADA) has experienced a 25% decline over the last 60 days, bringing its price to a key support level at $0.65.
Source: Coinmarketcap
Interestingly, its current price action mirrors that of Pepe (PEPE), which recently faced a steep selloff after breaking a similar support level.
Cardano (ADA) and Pepe (PEPE) – A Bearish Comparison?
Analyzing the daily charts of ADA and PEPE, both tokens have followed a strikingly similar trajectory. After getting rejected from their ascending resistance trendlines, ADA formed a descending broadening wedge pattern, while PEPE developed a falling wedge pattern, leading to sustained corrections.
Image Fullscreen ExampleCurrently, ADA is trading within the key support range of $0.61 to $0.68, marked by the red zone in the chart. Additionally, it is testing the crucial 200-day moving average (MA), an indicator that…
On the other hand, if ADA manages to hold this support and stage a bounce, we could see a strong recovery, with the price retesting the resistance trendline of the falling wedge…
Currently, ADA is trading within the key support range of $0.61 to $0.68, marked by the red zone in the chart. Additionally, it is testing the crucial 200-day moving average (MA), an indicator that has historically acted as strong support in previous cycles.
However, looking at PEPE’s price movement, the memecoin failed to hold its own support at a similar level, leading to a sharp 32% decline. If ADA follows the same pattern, it could be at risk of further downside, potentially dropping to the next major support at $0.34.
On the other hand, if ADA manages to hold this support and stage a bounce, we could see a strong recovery, with the price retesting the resistance trendline of the falling wedge. A breakout from the wedge could reverse the bearish trend and reignite bullish momentum.
Final Thoughts – A Make-or-Break Moment for ADA?
With ADA currently sitting at a critical decision point, traders should closely monitor price action around this support zone. If it breaks below $0.61, the downside risk increases significantly, mirroring PEPE’s recent breakdown. However, a strong defense of this level could lead to a bullish reversal, providing an opportunity for recovery.
Given the current market volatility, largely driven by macroeconomic events and crypto-related incidents, the coming days will be crucial in determining ADA’s next major move.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
