Cardano (ADA) has sparked excitement in the cryptocurrency market with a robust rally, outperforming Bitcoin and Ethereum. After consolidating above the $0.80 support, ADA surged past critical resistance levels at $0.90 and $1.00, reaching a high of $1.1156.
Currently trading above $1.00 and the 100-hourly simple moving average, Cardano remains in a strong position. The cryptocurrency is supported by a short-term rising channel on the hourly ADA/USD chart, with the lower boundary of the channel positioned at $1.075.
Key Resistance Levels
Despite its strong momentum, ADA faces resistance at $1.10, with additional barriers at $1.1120 and $1.1150. A decisive close above $1.1150 could set the stage for an extended rally. Analysts predict a potential climb to $1.20, with further bullish sentiment possibly driving ADA toward $1.25 in the near term.
Risk of a Downside Correction
However, failure to breach the $1.1120 resistance could trigger a pullback. Immediate support lies at $1.080, followed by $1.050. A break below $1.050 might expose ADA to deeper corrections, potentially testing the $0.975 mark—aligned with the 50% Fibonacci retracement of the recent upswing from $0.8373 to $1.1156. The $0.950 level could serve as a final support line to prevent further losses.
Technical Outlook
Cardano’s recent performance has reinforced its reputation as a leading altcoin. With strong bullish momentum and favorable technical patterns, ADA’s trajectory appears optimistic. However, traders should monitor critical resistance and support levels closely.
Also Read: Cardano (ADA) Price Prediction for 2025: Could $7.80 Be the Next Milestone? Experts Weigh in
Market Implications
Cardano’s surge comes as the broader cryptocurrency market shows signs of recovery, hinting at renewed investor confidence. As ADA continues to outpace its peers, its ability to sustain gains above $1.10 will be pivotal in determining its next move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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