Cardano price faces resistance at $0.77 as market awaits clear direction
Cardano remains in a consolidation phase
Cardano (ADA) is struggling to break past key resistance levels despite a modest recovery in recent sessions. The cryptocurrency has risen 3.26% to $0.756, recovering from a sharp sell-off that pushed prices near $0.73.
However, broader market conditions remain uncertain, with technical indicators showing mixed signals. While some momentum is returning, ADA remains below critical moving averages, suggesting that a sustained breakout has yet to be confirmed.
Cardano price analysis (Jan 2025 - Feb 2025) Source: TradingView.
Bearish pressure persists despite short-term recovery
The recent rebound has provided some optimism for traders, but ADA is still trading below the 20-period Exponential Moving Average (EMA) at $0.770. This level acts as a key short-term barrier, preventing further gains. Above this, the 50 EMA at $0.829 and the 200 EMA at $0.928 reinforce a longer-term downtrend. Unless ADA moves above these thresholds, the market will continue to lean bearish.
Momentum indicators also highlight uncertainty. The Relative Strength Index (RSI) is at 43.70, slightly recovering but still below the critical 50 level, indicating that bearish sentiment remains dominant. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator remains in negative territory, though its contracting histogram suggests that selling pressure is weakening. A potential bullish crossover in the MACD could provide further confirmation of an upward move.
Price action indicates a tense battle between buyers and sellers
ADA’s price movement remains trapped in a narrow range, with Bollinger Bands tightening—a signal that a larger breakout may be on the horizon. The lower Bollinger Band at $0.705 offers support, while the upper band at $0.805 presents the next major resistance level. If ADA fails to hold above $0.73, a retest of $0.70 could follow. However, if it breaks $0.77, the next upside target lies at $0.80 - $0.85.
Traders are watching these levels closely, as ADA remains at a critical juncture. The next few sessions will determine whether the cryptocurrency can gather enough strength for a meaningful rebound or if another downside move is imminent.
Previously discussed analysis emphasized that ADA remains in a bearish consolidation phase, with potential for recovery if resistance at $0.77 - $0.80 is breached.
