Cardano (ADA) has been through significant fluctuations, from gains to declines. After peaking above $1.20, ADA dropped below $0.60 and started rising again. However, facing multiple resistances raises the question: Will the recovery continue, or will prices drop again?
What Caused the Recent ADA Price Surge?
Cardano surged sharply after hitting the $0.60 mark, acting as a significant psychological level for traders. The surge was likely driven by a short squeeze, where traders betting on declines had to buy back their positions. However, ADA soon met resistance around $1.20 and is now trading at $0.82 with increased selling pressure.
Has ADA Found a Strong Support Level?
The bounce from $0.60 suggests strong demand. It's crucial for ADA to hold above this mark to have a chance for further upward movement. If the price falls below $0.80, a retest of the $0.60-$0.65 zone is possible. A break below this area could push support to $0.40.
What Do Technical Indicators Say?
The Relative Strength Index (RSI) for ADA is currently at 52, indicating a neutral zone. The index was recently oversold, signaling a potential recovery. If RSI climbs above 60, it could indicate continued bullish momentum; a drop below 40 would indicate weakness. Heikin Ashi candles show indecision, and though recent candles are green, ADA needs to establish itself above $0.90-$1.00 to confirm the trend.
Cardano prices remain at a crossroads. To continue the upward movement, ADA must break and hold above the $1.00-$1.20 resistance. If it fails to surpass resistance, prices may revisit the $0.60-$0.65 zone. In the long term, if general market conditions improve, ADA may reach higher levels again. Traders should closely watch the $0.80-$0.90 range to determine the direction of movement in the upcoming weeks.
