Cardano's Price Drops by 5%, Question Arises: Will ADA Reach $1.5?
Cardano (ADA) remains the tenth-largest cryptocurrency by market cap, with a current value of $28.54 billion. However, the past few weeks have seen a decline in ADA's price, currently trading at $0.79, a drop of 5.16% in the last 24 hours.
The recent decline can be attributed to several technical factors. Audit uncertainty and pending results, price support and resistance dynamics, increased price volatility, exchange outflows and whale behavior, general crypto market conditions, and liquidation risks are some of the key factors responsible for the price drop.
A significant upcoming audit scheduled for mid-August 2025 has increased market volatility, with pessimistic scenarios predicting ADA could drop to $0.50–$0.70 if the audit reveals issues or delays. Fear of unfavorable audit outcomes or regulatory scrutiny contributes to sell pressure.
ADA fell from around $0.94 at the start of 2025 to a low near $0.55 in April, showing weakness in maintaining support above critical levels. Resistance near $0.83–$0.85 and $0.90–$1.00 levels has posed hurdles for price recovery. Failure to reclaim these levels sustains bearish momentum.
Volatility rose as ADA's price swings widened in 2025, reflecting investor uncertainty and potentially exacerbating downside moves. Exchange outflows and sell-side pressure fluctuations continue to influence price swings.
Broader bearish market sentiment and liquidation risks also weigh on ADA price performance. For instance, a $34 million liquidation risk if ADA falls below $0.749 is a significant concern for investors.
Despite these challenges, ongoing technical upgrades like the Plutus V3, Hydra, and upcoming Midnight sidechain aim to improve scalability and DeFi capabilities, providing potential medium-term bullish catalysts. However, the immediate technical environment remains cautious due to pending audit results and resistance challenges.
Meanwhile, the Snorter Bot Project, a Telegram-based trading bot, is currently conducting a presale. The project scans the meme coin market for potential 100x opportunities, with over $2.19 million raised so far. The ticker for the Snorter Bot Project token is SNORT, and the current price in the presale is $0.0995. Investors can purchase SNORT using credit or debit cards, as well as cryptocurrency.
The price drop in ADA is believed to be caused by technical factors, not fundamental news. The bullish momentum is sustained as the price is above the 9-Day Moving Average. It's important to note that the price action indicates prospects for a short-term correction.
ADA has registered a 29.81% gain for the month of July, making it the best-performing month this year. This suggests that despite the recent decline, there is still potential for growth in the long term.
In summary, ADA's recent price decline is primarily driven by technical uncertainty around key audit outcomes, failure to hold crucial support levels, increased volatility, market-wide bearish trends, and short-term resistance hurdles. However, the potential for growth remains, with ongoing technical upgrades and the possibility of a short-term correction.
Finance-related concerns, such as audit uncertainty and increased market volatility, have contributed to the recent price drop in Cardano (ADA). The ongoing technical upgrades like Plutus V3, Hydra, and the upcoming Midnight sidechain may provide medium-term bullish catalysts, suggesting that there is still potential for growth in the long term despite the current price decline.
