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Can Cardano (ADA) Rally by Double Digits After Falling to a 5.5-Year Low?

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Cardano’s native token has collapsed by almost 80% over the past year, while its founder, Charles Hoskinson, said he’s “taking a break” and warned about an upcoming “wave of failures” in the ecosystem.

Despite the grim reality, certain analysts remain optimistic that a price revival could be on the way, while some key indicators support the bullish scenario.

Recovery in the Coming Weeks?

Earlier this month, ADA briefly crashed below $0.15, its lowest level since the end of 2020. As of this writing, it is worth around $0.16 (per CoinGecko’s data), which remains quite close to the local bottom.

And while many industry participants have lost faith in the token and expect additional losses, X user Sssebi presented an optimistic scenario. They believe Cardano’s ADA will not remain in its current range for long and predict a surge above $0.20 within a month.

The analyst based their theory on the asset having reached its most oversold level (on the weekly chart) in its entire history. Data show that the Relative Strength Index (RSI) recently dropped to 12 and now stands at around 25, which is still considered a bullish territory. On the other hand, ratios above 70 signal that ADA has become overbought and could be gearing up for a correction.

ADA RSI
ADA RSI, Source: CryptoWaves

Another popular X user who hasn’t panicked amid the bloodbath is Crypto with Haris ₿. They claimed ADA’s meltdown doesn’t look like the end but like an opportunity, reminding that similar collapses have occurred in the past.

“Back in 2023, ADA went from around $0.22 to $1.30 in just a few months. Maybe history repeats itself. Maybe it doesn’t. But if the next bull run comes, I wouldn’t be surprised to see Cardano make another crazy move,” they said.

The Crazy Rumor

Cardano’s founder, Charles Hoskinson, has drawn significant attention lately following several controversial statements. At the start of June, he raised concerns within the community by announcing a temporary break and warning that the broader ecosystem could experience a “wave of failures” due to project closures and financial difficulties.

Shortly after, Hoskinson opined that Cardano is “the only ecosystem that can run the world,” while more recently, some X users have suggested he might have sold approximately 1.5 billion ADA during the 2021 bull run. He hasn’t responded to the accusations, but the speculation could further shake investors’ confidence and lead to an additional price drop for the asset.

ポスト Can Cardano (ADA) Rally by Double Digits After Falling to a 5.5-Year Low? に初登場した。 クリプトポテト.

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