Cardano (ADA) Price: Bull Trap or Buying Opportunity? ADA Is at a Make-or-Break Level Right Now

TLDR

• ADA has broken below the key $0.19–$0.20 support, entering a demand zone between $0.14–$0.16
• Analyst Ali Charts sees a TD Sequential buy signal but warns of a possible bull trap between $0.160–$0.176
• Long-term analyst TraderaEdge still sees a 5x return possible, with a $0.50 target by 2028
• On-chain active users surged over 1,992% in six months despite weak price action
• Cardano ranked 7th among Layer 1 blockchains for development activity with 774 commits in 30 days

Cardano (ADA) is trading near levels last seen in 2020 after breaking below a key support zone at $0.19–$0.20. The breakdown has put sellers firmly in control in the short term, and buyers have shown little urgency to step in at current prices.

Analyst Ali Charts flagged a TD Sequential buy signal on the daily chart. This signal typically appears after heavy selling and can point to a short-term bounce. However, Ali Charts was quick to warn that the move could be a bull trap — a rally that pulls buyers in before reversing lower.

The analyst placed the likely resistance range for any bounce between $0.160 and $0.176. A rejection at $0.176 would suggest sellers remain in charge.

ADA is currently sitting inside a weekly demand zone between $0.14 and $0.16. This area lines up with a previously formed bullish order block and has historically attracted buying interest. If bulls fail to hold here, the next major support sits at $0.08–$0.10.

The RSI has moved into oversold territory on the weekly chart, suggesting selling pressure may be fading. But without reclaiming $0.19, the structure stays bearish.

Long-Term Outlook Still Points Higher for Some Analysts

Not all analysts are focused on the short-term weakness. TraderaEdge believes a 5x return from current levels remains possible over the next market cycle. The analyst points to a multi-cycle resistance trendline that could reach around $0.50 by 2028.

TraderaEdge said a drop toward $0.10 would not change the broader long-term picture for ADA.

The recent SecondFi wallet incident, formerly known as Yoroi, added pressure to market sentiment. Nearly 129 million ADA worth around $20 million was lost. The Cardano community noted the blockchain itself was not compromised — the issue was tied to the wallet software.

On-Chain Activity Tells a Different Story

Despite the price weakness, Cardano’s on-chain data shows growing activity. Daily active users have surged more than 1,992% over the past six months, with spikes in both early and late June.

Everstake reported 774 code commits across the Cardano network in the last 30 days. That placed Cardano seventh among all Layer 1 blockchains, accounting for 3.7% of total development activity.

ADA is currently trading inside the $0.14–$0.16 demand zone with resistance at $0.176.

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