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- ADA failed to confirm a bullish cup and handle breakout.
- Resistance at $0.83–$0.88 remains the key barrier for recovery.
- A drop below $0.79 could open the door to deeper losses.
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Cardano (ADA) started the week on shaky ground after briefly dipping below $0.80 on Monday. While the price has since recovered to $0.82, the bounce has yet to inspire confidence in a sustained rally.
Cup and Handle Setup Fails to Break Out
On the 4-hour chart, ADA formed a classic cup and handle pattern — often a bullish signal where sellers lose steam before buyers attempt to push higher. The pattern showed promise, with a rounded bottom followed by consolidation.
However, the expected breakout never came. Instead, sellers dragged the price below the handle’s support line, cutting momentum short. Weak inflows confirmed this setback, as the Chaikin Money Flow (CMF) stayed in negative territory, recently improving from -0.33 to -0.14 but still below zero.
Resistance Levels Keep ADA in Check
For ADA to confirm a bullish reversal, the price would need to climb past $0.88 and retest $0.92. Until then, the market remains in a consolidation phase. On the daily chart, the Awesome Oscillator (AO) remains negative, although green bars suggest selling pressure is easing.
Still, ADA trades below its 20-period Exponential Moving Average (EMA), signaling that bears remain in control. Unless Cardano breaks above this moving average, the broader downtrend will likely continue.
Also Read: Cardano Price Breakout: ADA Targets $1 as Fibonacci Charts Hint at $6 Rally
What’s Next for ADA?
If buyers fail to push ADA above $0.83 in the near term, the token risks slipping back toward $0.79 or lower. On the upside, a strong breakout could see Cardano testing $0.89 at the 0.618 Fibonacci level, with a stretch target of $0.95 if bullish momentum takes hold.
Cardano shows signs of stabilization, but its inability to clear key resistance levels leaves the outlook uncertain. For now, ADA remains stuck between consolidation and the threat of further declines. Traders will be watching closely to see whether bulls can muster enough strength to flip the trend.
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.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
