An analysis said Cardano (ADA) could still face additional sharp declines, but it has entered a zone where the risk-reward balance has improved for long-term investors.

On June 16, blockchain media outlet The Crypto Basic reported that crypto YouTuber Jason Casper said in a live chart analysis the current ADA price range is a buying area that would be hard to ignore if a rebound begins.

Casper described Cardano as a "good asset". He said the price is still in a downtrend, but high returns could be expected from current levels if market conditions improve.

The key is the ratio between upside potential and downside risk. Casper said the current price range is a good place for long-term holders to start buying. He judged that ADA has already fallen more than 90 percent from its all-time high (ATH) and has moved close to past major support zones, leaving more room for a rebound than for further declines.

He did not rule out further losses. He pointed to $0.125 and $0.05 as major support levels below the current price. He said $0.125 is a key weekly support level and the Fibonacci 0.618 retracement zone. It is about 30 percent below the current price and was last seen in November 2020.

The second support level is near $0.05, the Fibonacci 0.786 level. That would be about 72 percent lower than the current price. Casper said he viewed that scenario as very unlikely, but added he would see it as a buying opportunity if the price actually reaches that level.

He also presented larger potential returns in a rebound. Casper calculated that if ADA rebounds from around $0.052 and recovers its all-time high of $3.10, it could rise about 6,100 percent, or 59.6 times. He said that even if it does not regain the all-time high and only returns to $1.32, which was presented as the bull-market peak in December 2024, the gain would still be about 3,000 percent.

He also laid out a scenario in which ADA rebounds from the $0.125 support level. If it retakes its all-time high from that price range, the rise would be about 2,380 percent. He said the gain could expand to 3,100 percent if it rises to a new high of $4.

The market also noted that this view is not a single opinion. Analyst Matthew Dixon also previously assessed Cardano as a trade with a favorable risk-reward profile in February, when ADA was trading at $0.296. That view was based on the perception that ADA has withstood several bear markets in the past and could show a similar recovery pattern again.

In this situation, the key points to watch for Cardano narrow to two. One is whether key support near $0.125 and $0.05 actually holds. The other is whether expectations of a return to past highs can be reflected in the market again if a rebound begins. The current analysis points to the possibility of large gains while also noting that the risk of further declines remains as a precondition.