Cardano (ADA) Struggles to Stabilize After 22% Selloff, Faces Critical Resistance Test At This Level

Cardano’s native token, ADA, is attempting to stabilize after a steep 22% selloff in recent days, according to analysis from crypto expert Crypto ZX. The downside volatility aligns with a broader weakness across digital assets. However, ADA now faces a critical test at nearby resistance levels that could determine further trend direction.

Specifically, Crypto ZX points out that the 61.5 cent level has been crucial historical resistance that catalyzed the latest breakdown after rejecting further upside. ADA has since managed to claw back some of those losses as crypto sentiment shows early signs of improving. Still, previously supportive zones must now hold up and prove themselves.

Crypto ZX believes if ADA can reclaim levels above 52 cents, it opens the door to fully recovering recent losses as bulls regain conviction. However, the analyst tempers expectations around ADA-given assets like Solana, which are currently seeing much stronger speculative inflows and interest. Still, data shows ADA is tied closely to Bitcoin’s swings. So an extended Bitcoin upside could lift prices further.

Source: CoinStats – Start using it today

More broadly, though, traders express frustration around ADA’s lack of dynamism compared to other protocols for powering upside momentum independently. The coming days and weeks may prove critical for ADA to break its stubborn resistance levels and improve relative strength.

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Crypto ZX ultimately retains a constructive longer-term outlook on ADA fundamentals. However, he acknowledges that the token may continue lagging the market until decisive range breaks above 60 cents occur. From current levels, that would require a 35% move, highlighting the challenge facing bulls in resurrecting upside interest.

Still, Crypto ZX and other ADA devotees remain positioned for an eventual breakout, pending the necessary catalysts. But conviction faces ongoing tests after the steep breakdown shakes out vulnerable long positions.

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Petar Jovanović
Petar Jovanović

As the Head of Content at Captainaltcoin, I bring years of experience in the crypto industry. With a strong belief in the potential of the web3 market since 2017, I'm passionate about sharing valuable insights and knowledge. Feel free to connect with me on LinkedIn and let's discuss the exciting world of cryptocurrencies and decentralized technologies!