- Cardano (ADA) recently broke through the significant $1.18 resistance level, a milestone last reached in March 2022, but faces selling pressure in this overbought zone.
- For sustained growth, ADA must breach $1.30, or it risks consolidating below its moving averages near key support levels.
Cardano (ADA), one of the most prominent cryptocurrencies, has recently made headlines by overcoming significant resistance levels. After months of subdued performance, ADA is once again gaining momentum, fueled by bullish market sentiment. Here’s a breakdown of the recent price action, its implications, and what to expect next.
The $1.18 Breakthrough: A Historical Milestone
In a dramatic move, Cardano’s price surged from $0.76 to break through the $1.18 resistance level. This barrier holds historical significance, as it marks a price high not seen since March 2022. However, reaching this milestone wasn’t without challenges. The $1.18 resistance zone is also an overbought area, meaning that selling pressure typically intensifies as buyers struggle to sustain momentum.
The breakthrough, while significant, has not yet led to a sustained uptrend. Analysts suggest that if ADA manages to decisively breach $1.18, it could rally toward $1.40 before retracing to consolidate.
Market Indicators: What They’re Telling Us
ADA’s recent price movements reveal a mixed picture:
- Overbought Conditions: Cardano is currently trading in the overbought zone, indicating potential selling pressure. This was highlighted by a long candle wick on December 3, signaling resistance at higher price levels.
- Moving Averages: The price bars have slipped below the moving average lines on the 4-hour chart, suggesting that ADA might enter a range-bound phase. However, the overall trend remains upward, with the moving averages pointing north.
- Support and Resistance Zones: Key resistance levels to watch are $1.20, $1.30, and $1.40, while support zones lie at $0.90, $0.80, and $0.70.
The Road Ahead for Cardano
For ADA to continue its bullish trend, it must break above the 21-day Simple Moving Average (SMA) and establish itself above the $1.30 resistance. If successful, this could signal a new phase of growth, attracting both retail and institutional investors. Conversely, failure to maintain momentum may see ADA retreat to trade between its moving averages, potentially stabilizing above $0.90.
Final Thoughts
Cardano’s ability to surpass the $1.18 barrier underscores its resilience and the growing interest from the crypto community. While challenges remain, the altcoin’s strong fundamentals and recent bullish activity suggest that brighter days could lie ahead. Whether ADA becomes the star of another market rally or faces temporary setbacks, it remains a cryptocurrency to watch closely.