Cardano (ADA) Price: Bulls Defend Critical Support as Recovery Takes Shape

TLDR

• ADA experienced a notable decline, dropping below $0.9550 and reaching a low of $0.8769
• A breakout above a bearish trend line occurred at $0.9560, showing potential recovery signs
• The price is currently consolidating near $0.950 and the 100-hourly moving average
• Key resistance levels are established at $0.9750 and the crucial $1.00 mark
• Technical indicators show positive momentum with MACD in bullish zone and RSI above 50

Cardano (ADA) is showing signs of recovery after experiencing a sharp decline that pushed the price below the $0.9550 support level. The digital asset, which had been trading above $1.00, faced selling pressure that resulted in a temporary low of $0.8769.

The recent price movement began when ADA failed to maintain stability above the $1.00 threshold, following similar downward trends seen in Bitcoin and Ethereum markets. The decline accelerated as the price broke below several key support levels, including $0.9550 and $0.9500.

Market data from Kraken shows that buyers stepped in near the $0.8769 level, preventing further downside movement. This intervention has led to a modest recovery attempt, with the price managing to climb above $0.9150.

The recovery phase has been marked by several technical developments. A notable breakthrough occurred with the break above a bearish trend line, which had established resistance at $0.9560 on the hourly chart of the ADA/USD pair.

Trading activity shows that Cardano’s price has reclaimed the 23.6% Fibonacci retracement level, calculated from the downward move that began at the $1.0354 swing high and extended to the $0.8769 low.

Current market conditions place ADA below the 100-hourly simple moving average and the $0.9650 mark. This positioning suggests that while recovery attempts are underway, the asset still faces technical hurdles before confirming a stronger upward trend.

The immediate resistance zone is identified near $0.9550, which coincides with the 50% Fibonacci retracement level of the recent downward movement. This level serves as a crucial point for traders watching for signs of continued recovery.

Should the price action remain positive, the next resistance level to watch is $0.9750. However, the most critical barrier remains at $1.00, which previously acted as a support level before the recent decline.

Cardano Price on CoinGecko

Technical analysis indicates that a successful break and close above $1.00 could potentially trigger a stronger rally. In such a scenario, the price might target the $1.050 region, with the possibility of extending gains toward $1.120 in the near term.

The hourly MACD indicator has begun showing momentum in the bullish zone, providing some optimism for short-term traders. Additionally, the Relative Strength Index (RSI) for ADA/USD has moved above the 50 level, suggesting improving market conditions.

However, the market structure also reveals potential downside risks. If the price fails to overcome the $0.9550 resistance, another decline might occur. The immediate support level in such a scenario would be near $0.9320.

Below this level, additional support exists at $0.9150, which could prove crucial in preventing further price deterioration. A break below this support might expose the $0.900 level, with the next major support zone positioned near $0.880.

Trading volume patterns suggest that market participants are closely watching these key levels for signs of trend confirmation. The price action near these levels could determine the short-term direction of ADA’s market value.

The hourly chart patterns indicate the formation of a potential bottoming structure, though confirmation would require sustained trading above key resistance levels. The market’s reaction to these technical levels will be crucial in determining the sustainability of any recovery attempt.

Recent price data shows Cardano trading in a consolidation phase above the $0.9150 support level, as traders await clear directional cues. The asset’s ability to maintain these levels while forming higher lows suggests potential stabilization in the short term.

The post Cardano (ADA) Price: Bulls Defend Critical Support as Recovery Takes Shape appeared first on Blockonomi.