Cardano price consolidates near $0.96 as traders eye breakout levels
ADA/USD holds near $0.96, testing key resistance
Cardano (ADA/USD) price is holding steady around $0.959, marking a 2.11% gain, as it approaches key resistance levels. The cryptocurrency remains within a descending trendline, suggesting a critical phase where a breakout or breakdown could shape its next major move. Traders are watching price action closely as ADA fluctuates between $0.94 and $0.98, with technical indicators offering mixed signals.
Cardano price movement (January 2025) Source: TradingView.
Market structure and key resistance levels
The 4-hour and daily charts show ADA attempting to break above its descending trendline resistance at $0.98. A successful breakout above $1.00 could trigger a rally toward $1.10-$1.15, while failure to sustain above $0.94 may lead to a deeper correction.
The Exponential Moving Averages (EMA) are acting as dynamic support and resistance. The 20-day EMA at $0.945 is providing a short-term cushion, while the 50-day EMA at $0.9645 aligns with near-term resistance. The 100-day EMA at $0.9806 remains a critical level—if broken, it could confirm bullish momentum.
Momentum indicators signal indecision
The Relative Strength Index (RSI) on the 4-hour timeframe is at 47.42, indicating neutral momentum. On the daily chart, the RSI hovers around 52.43, showing mild bullish pressure. A move above 55 could confirm a stronger uptrend, while a drop below 45 would strengthen bearish sentiment.
The Bollinger Bands on the 4-hour chart show volatility compression, suggesting that ADA is preparing for a decisive move. Meanwhile, the MACD indicator presents mixed sentiment, with the MACD line slightly above the signal line but histogram bars near zero, indicating uncertainty in trend direction.
If ADA breaks above $0.98-$1.00, it could push toward $1.10-$1.15, with further upside resistance at $1.20. On the downside, losing $0.94 support could lead to a decline toward $0.91, with a potential drop to $0.85-$0.80 if selling pressure intensifies.
ADA at a technical crossroads
Cardano remains at a crucial technical junction, with EMA levels acting as resistance and RSI suggesting a neutral trend. The $0.94-$0.98 range will determine the next significant move. A break above $1.00 could shift momentum to bullish, while a failure to hold above support may extend the downtrend.
In our last review, we highlighted ADA’s sharp price swings, with key resistance at $1.02 and support at $0.91. The current consolidation phase continues to align with our prior outlook, reinforcing $0.94-$0.98 as a key trading zone for a potential breakout.
