Will $0.54 Hold or Trigger Swift Reversal?

Cardano’s price has fluctuated between $0.529 and $0.611 since dropping to a low of $0.51 on June 22.

As Cardano consolidates, traders are keeping an eye on where the ADA price will go next, with the market eyeing a key level that could serve as a launchpad or a trapdoor depending on how market participants respond in the coming days.

According to on-chain analyst Ali, a decline to $0.54 could provide an excellent entry point for traders keeping a close eye on Cardano. This level is regarded as a possible accumulation zone where buy-side pressure could rise if tested.

“A dip to $0.54 could offer a prime entry point for Cardano ADA,” Ali stated in a recent post on X, highlighting the technical significance of the support.

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In recent weeks, the $0.54 level has served as a strong demand level, protecting ADA against further falls. Cardano rebounded sharply from this key level on July 2, reaching a high of $0.611 on July 3 before declining.

Cardano price action

At the time of writing, ADA was up 2.19% in the last 24 hours to $0.585 as the crypto market slightly rose in early Sunday morning, with $71 million in shorts being liquidated.

However, the broader crypto market is still reacting to macroeconomic uncertainties, and Bitcoin’s recent lackluster performance has put more pressure on altcoins such as ADA.

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If the price falls and breaks below $0.54, ADA could tumble to the crucial support at $0.50. Buyers are likely to defend the $0.50 level with all their might, as a break below it would complete a descending triangle pattern. That might signal the start of a decline to $0.40.

On the upside, if buyers push the price above $0.61, ADA could reach the 50-day SMA at $0.67 ahead of the daily SMA 200 at $0.758. A trend change will be signaled after buyers drive beyond these key levels.