In the ever-volatile world of cryptocurrency, analysts are keeping a close eye on Cardano (ADA) and Avalanche (AVAX), two altcoins that have recently exhibited significant price movements and potential future trends. Cardano, despite a recent decline, shows signs of a possible rebound, while Avalanche faces uncertainty following a dramatic rally.
Starting with Cardano, the altcoin has experienced a steady decline over the past week. After reaching a high of approximately $0.77 on March 26, 2025, ADA has seen its price drop to $0.6676, marking a 0.9% decrease in just the last 24 hours. This downward trend has raised concerns among investors, but analysts remain cautiously optimistic about the coin's potential for recovery.
According to a weekly chart shared on TradingView, ADA's price pattern is currently situated within an ascending channel. This channel represents an upward trend where ADA has historically bounced between established boundaries. Notably, the coin surged from $0.2 to $2.7 in August 2021 before entering another downward trend. The chart suggests that if Cardano follows its established pattern, it could see a rebound soon.
Green lines on the analyst's chart indicate potential price levels for ADA. Should the price break out, $2.7567 is identified as the first resistance level. The analyst has set an ambitious ultimate target price of $50.4821 for ADA, which would represent a staggering 7,398% increase from current levels. Drawing from the price action within the ascending channel pattern, this target could materialize by the end of Q3 2025.
However, caution is warranted. Analyst Ali Martinez has raised concerns about the support region between $0.70 and $0.80, which ADA recently broke below. If ADA fails to recover and reclaim this support level soon, Martinez warns that it could face further declines, potentially dropping to as low as $0.31 to $0.24, a common trend following breakdowns from this support area.
Despite the risks, Cardano has not lost its appeal among institutional investors. A recent report from CoinShares highlighted that Cardano experienced $0.6 million in inflows into exchange-traded products (ETPs) for the period ending March 31, 2025. This pushed its total monthly inflows for March to $63.3 million, with total institutional inflows for Cardano in 2025 now standing at $70 million. The total assets under management for ETPs tracking Cardano have reached $121.2 million, indicating strong institutional interest.
In comparison, other cryptocurrencies are also seeing varied inflows. For instance, XRP saw $4.8 million in weekly inflows, while Solana and Ethereum garnered $7.8 million and $15 million, respectively. This suggests that while Cardano is facing its challenges, it remains a significant player in the altcoin market.
Shifting focus to Avalanche, the altcoin experienced a remarkable rally of over 50% between March 11 and March 26, 2025, culminating in a high of $23.46. However, this bullish structure was invalidated last week when the price broke down, raising questions about whether the recent gains can be salvaged.
After reaching a low of $15.27 on March 11, AVAX's rally was a welcome development for investors. The reclaim of the $20 horizontal area was seen as a positive sign since this area has historically provided both resistance and support since 2022. However, following the bullish rally, AVAX created a bearish candlestick last week and has since fallen below the $20 support area.
Technical indicators also paint a bearish picture for AVAX. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are trending downward and below critical levels, indicating that if the downward movement continues, the next closest support area will be $11.20. The daily time frame also shows a bearish prediction for AVAX, as the price action suggests an ongoing A-B-C correction since March 2024.
The wave count analysis indicates that AVAX is currently in wave C of this correction, with the sub-wave count suggesting that another downward movement is likely before reaching its low. The price action is contained within a descending parallel channel, and if the bearish trend continues, it could lead to a low of $7.70, touching the channel's support trend line.
As it stands, the closest support levels for AVAX are at $9.50 and $7.70, and the recent bearish candlestick indicates that the altcoin's bullish structure has been compromised. Analysts are closely monitoring the situation to determine whether the recent positive news from Avalanche, including the launch of a new Layer-1 by KOR Protocol aimed at bringing intellectual property to Avalanche, can help turn the tide.
In summary, both Cardano and Avalanche are navigating turbulent waters, with Cardano showing potential for a rebound despite recent declines and Avalanche facing uncertainty after a significant rally. Investors will need to stay vigilant as they assess the evolving landscape of these altcoins and the broader cryptocurrency market.
