- ADA tests critical support, signaling a potential turning point for price action.
- Lower highs indicate selling pressure, but bulls are attempting to hold the line.
- A breakout above resistance could shift momentum and fuel the next leg up.
Support Zone Faces Pressure
Cardano’s price has been hovering near an important support level, struggling to maintain stability after recent retracements. The $0.65-$0.70 range has acted as a safety net in previous downturns, with buyers stepping in to prevent further losses. However, repeated tests of this level can weaken its strength, making a potential breakdown more likely if bullish momentum fails to materialize.
The chart suggests that ADA is still under pressure, with lower highs forming on the chart. This pattern hints at continued bearish sentiment unless a significant reversal occurs. If ADA manages to hold above this support zone, it could provide the foundation for a relief rally. A failure to defend this area, however, could expose the price to a deeper decline, possibly toward the $0.50 mark.
Resistance Levels Pose a Challenge
On the upside, ADA faces resistance near the $0.85-$0.90 range, where previous attempts to break higher have been met with strong selling. Bulls have struggled to push beyond this barrier, leading to multiple rejections that reinforce the bearish pressure. For any meaningful bullish breakout, ADA needs to clear this resistance and establish it as a support zone.
If buyers succeed in breaking through, the next major target would be around the $1.10 mark, where prior peaks indicate strong historical significance. This move would not only confirm renewed bullish momentum but also set the stage for a potential trend reversal. However, another rejection at resistance could lead to more choppy price action and prolonged consolidation.
What’s Next for ADA?
If ADA manages to reclaim $0.85, it could open the door for a larger rally, bringing $1.10 into focus as the next critical target. A breakout above these levels would likely fuel increased buying interest, signaling a potential shift in trend. However, without a decisive move past resistance, ADA could continue its range-bound trading, testing patience among investors.
For now, the key levels to watch remain the support at $0.65 and resistance at $0.85. If ADA maintains its footing above support while gradually pushing higher, it could indicate accumulation by buyers in preparation for an upside move. Conversely, a breakdown below support would invalidate the bullish case, increasing the risk of further downside.
