Cardano Price Prediction: 15% Drop to $0.54 Could Form Major Buy Zone

In Brief

• ADA could retest $0.54 support before rebounding toward $0.79 and $1.15 resistance.
  
• Long-term wedge pattern hints at potential 550% rally if breakout occurs near $0.64.
  
• CLARITY Act may classify Cardano as a digital commodity, boosting regulatory clarity.

Cardano (ADA) is showing mixed signals as price action consolidates near key support and resistance levels. The token is currently trading at $0.644, up 1.40% in the last 24 hours but down 4.38% on the week. 

According to analyst Ali, ADA’s 12-hour Binance chart highlights a descending pattern, with critical support near $0.54 acting as a major buy zone. Resistance levels stand at $0.79 and $1.15, capping recent upside attempts.

The structure suggests potential weakness in the short term, yet the lower boundary near $0.54 could attract buyers seeking accumulation opportunities. The 1-hour chart shows volatility persisting, though ADA remains above key intraday supports. 

A 15% correction from current levels would align with Ali’s projection, confirming $0.54 as a possible turning point for a rebound. 

Long-Term Pattern and Regulatory Outlook

According to Bitcoinsensus, ADA has traded within a long-term wedge channel, consistently respecting both trendline boundaries. Historical data shows surges of over 200% and 300% after retesting the lower support region. 

Currently positioned near $0.6355, Cardano sits at the bottom of this multi-year formation, implying strong potential for an upward move. If the wedge breakout occurs, projections indicate a possible target around $2.70, representing a 550% gain from current prices.

Recent Coinglass data reveals over $170 million in Cardano futures liquidations since October 10, reducing leverage in the market. This reset has lowered funding rates and allowed spot buyers to regain control of price action. 

On the regulatory front, Cardano is likely to be classified as a digital commodity under the pending CLARITY Act. The bill defines decentralization standards, and Cardano meets them through its Ouroboros Proof-of-Stake system, 2,800+ stake pools, and decentralized governance. 

Despite market shifts, Cardano remains one of the only top 15 crypto assets to sustain long-term market cap dominance.