Cardano Struggles to Gain Momentum - ADA Faces Key Resistance Levels

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Cardano Struggles to Gain Momentum - ADA Faces Key Resistance Levels

ADA Attempts Recovery but Strong Hurdles Remain Ahead

Cardano's price is showing signs of recovery after dipping below the $0.75 mark, but it continues to face stiff resistance. While ADA has managed to bounce back from the $0.65 support zone, the road to higher levels remains challenging.

Cardano Price Attempts a Comeback

Over the past few days, ADA has followed the broader crypto market trend, sliding below key support levels at $0.75 and $0.70, much like Bitcoin and Ethereum. The decline took the price down to $0.65, marking a low of $0.6495 before it staged a modest rebound.

The recovery wave saw Cardano climb past $0.68 and $0.70, reaching the 50% Fibonacci retracement level of the drop from its $0.8169 swing high to the $0.6495 low. However, ADA remains below the $0.75 level and the 100-hourly simple moving average, indicating continued bearish pressure.

A short-term bearish trend line is forming on the hourly chart of the ADA/USD pair, with resistance at $0.72. If ADA manages to break above this trend line, the next significant hurdle will be at the $0.75 resistance level, followed by $0.7750. A successful breakout above these levels could pave the way for a retest of $0.80.

Should Cardano close above the $0.80 resistance, bullish momentum could take over, potentially driving the price toward $0.95. Further gains might even push ADA to challenge the $1.00 mark in the near future.

Risk of Another Decline?

On the flip side, if ADA fails to break above the $0.75 resistance, another downturn could be on the horizon. Immediate support lies at $0.7150, with a more crucial level at $0.6880. A decisive drop below $0.6880 could send ADA back toward $0.65, with the next key support sitting at $0.6320, where buyers may look to step in.

Technical Outlook

  • Hourly MACD: Showing weakening bullish momentum.
  • Hourly RSI: Now below the 50 level, signaling potential downside risks.
  • Major Support Levels: $0.7150, $0.6880, and $0.6500.
  • Major Resistance Levels: $0.7500, $0.7750, and $0.80.

While Cardano is attempting a comeback, the presence of strong resistance levels means the battle for a sustained rally is far from over. Traders should keep a close eye on the $0.75 and $0.80 zones to determine the next significant move for ADA.

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