As the cryptocurrency market navigates its current trajectory, Cardano's price has been trending downward since hitting its cycle high in August last year. Despite initial hopes of an altseason in May, the ADA token has relinquished its gains, leaving investors wondering what's next. The current market structure suggests that Cardano may be at risk of further downside in the coming months if it fails to hold above a significant support level.
A closer examination of the monthly chart reveals that the Cardano price has been oscillating within a multi-year channel formation since 2021. After reaching the upper boundary of this channel at $1.195 in early 2025, the cryptocurrency's price has been in a steady decline, with the loss of a significant support level around $0.544 last November. According to crypto analyst Ali Martinez, the next definitive floor in sight for the Cardano price is around $0.247, which has historically acted as a major support level.
Breaking Down the Support Level
This support level has been crucial in the past, as it kick-started the last rally that saw the price of ADA reach $1.195. However, the Cardano price has recently drifted beneath this support level, falling to as low as $0.232. With the end of May rapidly approaching, it remains to be seen whether the ADA candlestick will eventually close below the $0.247 floor. If this occurs, Martinez suggests that the immediate market structure will be altered, indicating a deeper valuation phase is underway.
The implications of a close below $0.247 are significant, with potential "high-conviction macro targets for long-term accumulation" lying around $0.113 and $0.051. This would represent a drop of nearly 78% from the current price point. However, if the major channel support holds and demand returns to the crypto market, the altcoin could potentially bounce back to around $0.544. As of now, the price of ADA stands at around $0.237, reflecting an over 2% jump in the past 24 hours, leaving investors to ponder the future of Cardano's price.
