Cardano price struggles below key resistance despite signs of recovery
Cardano faces resistance at $0.80
Cardano (ADA) has shown some resilience after a sharp decline, trading at $0.766 with a 2.94% gain in the session. The cryptocurrency rebounded from a crucial $0.70 support level, which previously triggered a buying reaction.
However, despite the short-term relief, ADA remains trapped below major resistance zones, struggling to regain bullish momentum. The broader market sentiment remains cautious, with traders looking for confirmation of a breakout before declaring an end to the recent downtrend.
A double-bottom pattern has emerged on the daily timeframe, suggesting that ADA may be stabilizing. However, this pattern needs confirmation through sustained buying pressure above key resistance levels. The descending trendline, which extends from previous highs, continues to limit upward movement. The $0.85 level represents a key area where bulls need to regain control to signal a shift in trend. If ADA fails to hold above $0.70, it could revisit deeper support at $0.63, aligning with historical price structures.
Cardano price dynamics (Dec 2024 - Feb 2025) Source: TradingView.
Short-term price action shows consolidation with weak momentum
The four-hour chart reveals that ADA is attempting to establish a base after bouncing from the recent lows. However, it remains below the 20 EMA at $0.784 and the 50 EMA at $0.847, which are acting as dynamic resistance levels. The longer-term 100 EMA at $0.901 and 200 EMA at $0.937 suggest that significant buying pressure is required to reverse the bearish outlook. The relative strength index (RSI) is hovering at 39.46, indicating that momentum remains weak but is no longer in oversold conditions. A recovery above 50 on the RSI would be an early signal of bullish strength.
The MACD histogram is beginning to contract, suggesting that selling pressure is weakening. However, a bullish crossover between the MACD line and the signal line is yet to be confirmed. Until then, the overall momentum remains negative, limiting the chances of an immediate uptrend. If ADA manages to break above $0.80, it could trigger further buying, but failure to reclaim this level might lead to another wave of selling toward $0.70.
Breakout levels to watch as volatility narrows
On the 30-minute chart, ADA is trading in a narrow range, which often precedes a larger price movement. The Bollinger Bands indicate that volatility is decreasing, with the middle band at $0.754 acting as an intraday support level. The upper band at $0.769 represents short-term resistance. A break above $0.77 could open the door for a move toward $0.80, while a break below $0.75 might push the price back toward $0.72.
Despite the recent stabilization, ADA’s long-term outlook remains uncertain. The cryptocurrency must break above $0.80 - $0.85 to signal a potential reversal. Otherwise, the bearish structure is still intact, increasing the likelihood of another retest of lower support levels. Market participants will closely watch upcoming price movements to determine whether this recovery is sustainable or merely a temporary relief before further downside.
Previously discussed, Cardano's decline has been driven by weak altcoin performance, broader market uncertainty, and increased selling pressure, leading to a 30% drop in a month and a significant decline in investor confidence.
