- Cardano (ADA) is currently consolidating above the $1.00 mark, with the potential for a rally if it breaks key resistance levels around $1.050.
- However, failure to surpass these levels could lead to a pullback toward support zones near $0.9650 and $0.9350.
Cardano (ADA) has been riding a wave of consolidation recently, holding steady above the $1.00 level. As the cryptocurrency market prepares for its next major move, ADA is positioning itself for a potential rally. Here’s a closer look at what could lie ahead for Cardano.
ADA’s Consolidation Phase
After beginning a fresh upward move from the $0.8800 zone, Cardano has steadily advanced. The price has remained above the $0.950 mark and is currently trading above the 100-hour simple moving average. Although ADA has shown some positive momentum, it is encountering resistance as it nears the $1.050 zone. A key bearish trend line is forming on the hourly chart, adding to the challenge for the bulls as they aim to break through.
Can ADA Break the $1.050 Resistance?
Cardano’s price action has shown strong gains over the past few days. ADA cleared significant resistance levels, including the $0.850, $0.880, and $0.9250 marks. The price even surpassed the 50% Fibonacci retracement level of the recent downward move from $1.150 to $0.8696, signaling the potential for further upward movement.
However, the bulls face a tough hurdle as the price approaches the $1.020 to $1.050 range. If ADA can break through these key resistance points, the price could experience a surge, with the next target being $1.0840. A close above $1.0840 could trigger a more substantial rally, potentially driving Cardano’s price toward the $1.150 and $1.20 zones.
What’s Next for Cardano?
If ADA fails to overcome the $1.050 resistance, a pullback may be on the horizon. Immediate support is found near $0.9650, with more significant support around $0.9350. A break below the $0.9350 level could lead to further declines, with the price possibly testing the $0.880 region. Bulls are expected to make a stand at the $0.8450 support level, but for now, Cardano’s ability to hold above the $0.950 range will be critical in determining its next move.
Technical Indicators: Bullish Momentum Building
- MACD: The hourly MACD is gaining momentum in the bullish zone, suggesting that buying pressure is building.
- RSI: The Relative Strength Index (RSI) for ADA is currently above 50, which is another sign that the momentum could lean bullish in the near term.
Conclusion
Cardano (ADA) remains in a pivotal position. A break above $1.050 could spark a fresh rally, while a failure to do so may lead to further consolidation or a dip toward lower support levels. With technical indicators showing bullish signs, ADA’s next big move could be just around the corner.
