Cardano Price at Make-or-Break Point as Analysts Clash Over Next Move

Cardano's (ADA) price is at a critical juncture after recent market comments sparked debate about its next move. Analysts are divided, with one warning that the current bounce could be a bull trap and another still predicting strong gains over the coming years.

The discussion follows a security incident involving the SecondFi wallet, formerly called Yoroi, which resulted in the loss of nearly 129 million ADA valued at about $20 million. Despite this, market analyst Ali Charts notes that the daily chart has printed a TD Sequential buy signal, indicating a possible short-term price rebound after heavy selling.

However, Ali Charts warns that traders should not assume the market has turned around and that the expected bounce could become a bull trap. This would mean buyers enter after seeing the price recover, only for the rally to lose strength and move lower again. The analyst believes the relief move could stop between $0.160 and $0.176, and if Cardano price cannot break above that area, the price may continue falling.

Meanwhile, another market analyst, TraderaEdge, still sees room for growth in ADA's price over the next few years. They believe a five-times return remains possible, although there is no guarantee it will happen. A drop toward the $0.10 level would not change the bigger picture for Cardano price, according to this analysis, as the main focus remains on a multi-cycle resistance trendline that could reach around $0.50 by 2028.

Cardano development continues despite recent events, with Everstake noting that the network logged 774 code commits over the last 30 days, placing it seventh among Layer 1 blockchains and accounting for 3.7 percent of total development activity during this period.