Cardano ($ADA) is hanging by a thread. The cryptocurrency is teetering on a critical support level, and analysts warn that a failure to reclaim it could trigger a steep drop.
ADA’s Critical Support Level
In March 2025, Cardano (ADA) experienced a significant price drop, plunging more than 42% from its early March high of $1.17 to $0.67 on April 1.
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This decline was largely driven by market volatility and macroeconomic factors, including trade war tensions and recession fears, which fueled market-wide caution, dragging ADA price down.
Despite President Donald Trump’s announcement in early March regarding Cardano’s inclusion in the U.S. Strategic Crypto Reserve, the news failed to restore investor confidence as expected.
On the last day of March, ADA fell below the crucial $0.685 support level on the 4-hour timeframe, briefly dipping to $0.63 before rebounding. Currently, it is attempting to reclaim the trendline, which has now turned into resistance.
On the monthly timeframe, March saw significant price swings. However, ADA managed to close the month slightly higher than its opening price, marking a modest positive finish.
Additionally, ADA is currently holding slightly above the monthly RSI moving average. According to crypto analysts, if ADA maintains this position, it could signal a bullish outlook for April and May.
What to Expect Next?
Crypto analyst Ali warns that Cardano is at risk of losing a critical support level.
“Cardano $ADA is breaking below a key support level. If it doesn’t reclaim it soon, the next move could be significant,” he stated in his X post.
A decisive breakdown could trigger stop-loss orders, intensifying selling pressure and pushing ADA toward its next lower support level.
If Cardano fails to recover and break the resistance, losing support could trigger cascading liquidations, driving ADA toward $0.50—another 24% drop.
Can the Bulls Take Back Control?
However, if ADA reclaims support, a bounce here could spark a reversal, with ADA eyeing the $1.14 resistance zone—a level that has repeatedly rejected price action.
While the overall crypto market—especially altcoins—is currently lagging fundamental catalysts for a sustained rally, one major event could change the landscape: regulatory clarity from U.S. authorities this week.
The U.S. Department of the Treasury and other federal agencies are expected to finalize their Bitcoin holdings audit by this Saturday, April 5. Additionally, a decision is expected on whether Cardano (ADA), XRP, and Solana will be included in the U.S. National Digital Asset Stockpile.
If ADA is added to this strategic reserve, it could serve as a strong bullish catalyst, driving prices higher.
Why This Matters
Cardano (ADA) price is at a turning point. A collapse below support could spell deeper losses, while inclusion in the U.S. National Digital Asset Stockpile could be the catalyst for a strong comeback.
