Cardano (ADA) is showing signs of activity on the daily chart, consolidating near $0.58. The main question is whether this consolidation can support a sustainable move back above $0.70.
Current Trend in Cardano Market
On the daily chart, Cardano's price is around **$0.579** and has been moving sideways for the last few days. This tight range indicates a clear base-building phase.
After a steep downtrend that started in mid-May, Cardano price found support near $0.50, bouncing modestly but struggling to break above the $0.60 resistance zone. This range between $0.50 and $0.60 is crucial: if buyers keep defending $0.50, the odds of a short-term rally increase significantly.
Analysis of RSI Indicators
The Relative Strength Index (RSI) on the daily timeframe sits at **43.7**, slightly below the neutral 50 mark. This indicates overall bearish momentum, but it's emerging from oversold territory, suggesting that intense selling may be cooling off.
In June, RSI dropped close to 30, hinting at potential exhaustion of bears. Since then, the RSI has started to curve back up, showing early signs that buyers are regaining confidence. A sustained break above 50 on the RSI would strengthen the bullish reversal narrative.
Prospects for Overcoming Resistance Levels
Looking at the chart, ADA price faces immediate resistance around **$0.58–$0.60**. If the bulls can push above this zone with volume, the next target lies at **$0.70**, which acted as support in April and early May before the downturn.
A simple projection shows:
- Current support: $0.50 - Current resistance: $0.60
Breakout target = Resistance + (Resistance - Support)
= $0.60 + ($0.60 - $0.50) = **$0.70**
Thus, a clean breakout could see Cardano price retesting $0.70 quickly; however, failing to hold $0.50 could drag it down to $0.42 or even the psychological $0.30 level.
Considering the base formation, RSI recovery, and historical support-resistance flips, the probability of an upward push for ADA looks moderate. As long as $0.50 holds firm, traders may eye a **20% move** from current levels. However, closing below $0.50 could renew selling pressure and retest deeper levels.
