Cardano price tests key resistance levels as bullish momentum faces challenge
ADA nears major resistance as technical indicators signal mixed momentum
Cardano (ADA) continues to experience increased volatility, currently trading around $0.785, as traders remain uncertain about the next major price move. Following multiple attempts to break key resistance zones, the asset has held above strong support, reinforcing optimism among bulls.
However, momentum indicators suggest ADA is at a crucial juncture, where a sustained rally could push prices toward $1, or a rejection at resistance may trigger a pullback.
ADA faces immediate resistance at $0.867, aligning with previous supply zones, while stronger resistance sits at $0.988—a level that has historically led to price rejections. A breakout above $0.867 could propel the asset toward the $1 psychological barrier, a key target for bullish traders. On the downside, $0.750 remains the first line of defense, with additional support found between $0.700 and $0.650. A breakdown below these levels could lead to a further drop toward $0.625, increasing bearish sentiment.
Cardano price dynamics (January 2025 - February 2025) Source: TradingView.
Technical indicators show mixed signals
Bollinger Bands on the 4-hour chart indicate heightened volatility, with ADA trading near the upper band at $0.837. While this suggests potential overextension, the middle band (20-period SMA) at $0.762 remains a crucial support level. If ADA sustains above this level, the likelihood of retesting $0.867-$0.880 remains high. However, a dip below $0.762 could shift momentum in favor of the bears, pulling ADA toward $0.687.
The MACD indicator reflects bullish momentum, with the MACD line (0.01679) above the signal line (0.01511), confirming strong buying interest. However, shrinking histogram bars suggest that momentum may be slowing. If a bearish crossover occurs, ADA could face a short-term correction.
Meanwhile, the RSI at 58 remains in neutral-to-bullish territory, providing room for further upside before entering overbought conditions. A move above 65 would signal increasing buying pressure, whereas a drop below 50 could indicate waning momentum and a potential test of $0.750 support.
Trend reversal or temporary bullish move?
Cardano has broken out of a descending trendline, signaling a potential trend reversal. The price is currently retesting the $0.765-$0.780 breakout level, serving as a pivotal point for future movement. If ADA establishes this as strong support, further upside toward $0.85-$0.88 is likely. However, failure to maintain these levels could invalidate the breakout and lead to a pullback toward $0.700.
With the 200 EMA at $0.8619 serving as a key resistance, a breakout above this level could confirm a sustained uptrend, whereas continued rejections may keep ADA within a sideways range.
Final outlook: Can ADA reach $1.00?
Cardano is in a bullish but cautious phase, with $0.867 acting as the next major hurdle for further price appreciation. If ADA can hold above $0.765 and break through resistance, a rally toward $0.88-$0.90 becomes increasingly probable, potentially setting up a run toward $1.00. However, failure to maintain support at $0.750 may result in a retest of $0.700, with a break lower exposing ADA to a decline toward $0.650.
With MACD and RSI showing early signs of slowing momentum, confirmation from higher volume and continued bullish price action will be crucial. The EMA alignment favors the bulls, but overcoming the 200 EMA at $0.8619 remains the key test for a breakout.
In previous discussions, ADA’s long-term structure showed signs of bullish development, but price action remained vulnerable to external market conditions and broader crypto sentiment.
