Cardano (ADA) is facing a short-term correction after attempting to breach the crucial $0.80 resistance zone. While the bulls managed to push the price above $0.70 initially, they ultimately faced strong resistance near $0.80, leading to a pullback.
Key Support in Focus
Currently, ADA is trading below $0.72 and the 100 simple moving average (4-hour timeframe), indicating a potential downtrend. However, a glimmer of hope remains for bulls. A key bullish trend line with support at $0.6880 is visible on the 4-hour chart. If the price holds above this level, it could signal a potential reversal and another attempt at an upward move.
Prior to this correction, ADA exhibited a positive surge after finding support around $0.58. The bulls successfully climbed above resistance levels at $0.62 and $0.68, mirroring similar trends observed in Bitcoin and Ethereum. This momentum carried the price towards $0.70, but resistance proved too strong at $0.80.
Technical Analysis: Bulls vs. Bears
Several technical indicators suggest a potential tug-of-war between bulls and bears. The MACD (Moving Average Convergence Divergence) on the 4-hour timeframe is losing momentum in bearish territory, indicating weakening selling pressure. Similarly, the Relative Strength Index (RSI) has dipped below 50, suggesting the price may be oversold and ripe for a bounce.
Support and Resistance Levels: If the bulls can defend the $0.6880 support zone, immediate resistance lies at $0.7220. A successful breach of this level paves the way for further gains towards $0.74 and potentially even $0.80. Overcoming the $0.80 hurdle could trigger a significant rally, pushing the price towards $0.8250 or even $0.850.
Also Read: Cardano Founder Warns of AI-Fueled Threat in Bull Market Boom in 2025 (Deepfake Cryptoscams)
Potential Downside
However, if the bulls fail to regain control and the price falls below $0.7220, further downside pressure could materialize. The next support levels to watch out for are $0.6800 and $0.6350. A break below these levels could lead to a steeper decline towards $0.6120.
A Crucial Juncture for ADA
The coming days will be crucial for Cardano. Holding above $0.6880 is essential for the bulls to maintain momentum and potentially resume their upward climb. Conversely, a breakdown below this level could trigger further losses in the near term. Investors should closely monitor price action and technical indicators to make informed trading decisions.
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