Cardano (ADA) has entered a critical phase as it struggles to maintain momentum after its recent rally above $0.70. The cryptocurrency showed impressive strength initially but now faces significant resistance at the $0.80 level.
Recent Price Action
ADA demonstrated notable strength by breaking above several key resistance levels. The token surged past $0.70 and $0.72, eventually reaching a local high of $0.8204. This move outperformed both Bitcoin and Ethereum during the same period.
Technical Analysis
A bullish trend line has formed with support at $0.75 on the hourly chart. The price maintains position above the 100-hourly simple moving average, suggesting underlying strength. Key support levels include:
- Primary support: $0.75
- Critical support: $0.715
- Base support: $0.65
Resistance levels to watch:
- Immediate resistance: $0.78
- Major resistance: $0.80
- Target resistance: $0.82
Market Implications
The current price action suggests two possible scenarios. A breakthrough above $0.82 could trigger a strong rally toward $0.915, with potential extension to the psychological $1.00 mark. However, failure to overcome $0.80 might lead to a retest of lower support levels.
Technical indicators paint a mixed picture. The MACD shows decreasing bullish momentum, while the RSI has dropped below 50, indicating weakening buying pressure.
Advertisement
Ready to trade ADA with up to 100x leverage? Trade on DeFX with advanced features and multi-collateral support.
Looking Ahead
Traders should watch the $0.75 support level closely. A break below could trigger a deeper correction. Conversely, sustained trading above this level could set up ADA for another attempt at the $0.80 resistance.
The overall market structure remains positive above $0.715. However, bulls need to defend current support levels to maintain the upward trajectory.
Tags: Cardano, ADA price analysis, cryptocurrency trading, technical analysis, crypto markets
Source: NewsBTC