Cardano (ADA)\u2019s price continues to move sideways, holding its range for the past 10 days, while online sentiment grows. Some analysts suggest that a retest of the local resistance could be near if the cryptocurrency holds its crucial support zone.<\/p>\n
Cardano has retraced 40% from its two-month high of $1.17, dropping to the $0.7 range over the past few weeks. ADA climbed 80% on March 2 after US President Donald Trump announced a \u201cCrypto Strategic Reserve,\u201d including the cryptocurrency, which sent the token to monthly highs.<\/p>\n
After its massive pump, the altcoin retraced to $0.9, holding this zone through the following days. However, the March 6 executive order establishing a Strategic Bitcoin Reserve and a \u201cDigital Asset Stockpile\u201d sent ADA below the crucial level.<\/p>\n
At the time, the White House\u2019s Crypto Czar, David Sacks, clarified<\/a> that the ADA and the other altcoins named were just used as a reference for the top cryptocurrencies in the market.<\/p>\n Since then, Cardano has moved sideways, hovering between $0.68-$0.75. ADA dropped to $0.64 during the March 11 market crash before bouncing. Despite the ongoing price action, online sentiment has been positive towards ADA this week.<\/p>\n On Tuesday, on-chain analytics firm Santiment pointed<\/a> out that Cardano saw a highly positive sentiment on social media. The bullish sentiment was fueled by the Securities and Exchange Commission (SEC) classification of ADA\u2019s use case as \u201csmart contracts for government services.\u201d<\/p>\n The news \u201cpushed bullishness to its highest rate in over 4 months,\u201d the firm noted. Moreover, large-scale investors have also shown positive sentiment toward Cardano, with Whales purchasing<\/a> around 190 million ADA tokens in the past 48 hours.<\/p>\n ADA has been in a downtrend since December 2024, when it hit its 3-year high of $1.32. The February market retraces sent the cryptocurrency\u2019s price below several crucial support zones, with the token hovering between the $0.60-$0.80 price range.<\/p>\n Analyst Sjuul from AltCryptoGems noted<\/a> ADA has \u201ca weird-looking chart, mainly due to the announcement of the strategic reserve.\u201d As a result, Cardano\u2019s most crucial support level is at $0.66, as it could send it to monthly lows.<\/p>\n According to the analyst, \u201cThat level should hold; otherwise, all this recent price action will result in a distribution phase.\u201d Previously, Sjuul affirmed<\/a>\u00a0Cardano\u2019s chart displayed a Power of 3 in the making, signaling that the cryptocurrency was entering the third phase.<\/p>\n This pattern divides the price cycle into three phases: accumulation, manipulation, and distribution. In the last phase, a strong price breakout occurs, with momentum building in the direction opposite to the manipulation. Based on this, if ADA lost the $0.66 mark, the token could see a significant price correction.<\/p>\nADA Breakout Or Breakdown Next?<\/h2>\n