Cardano surged 14.66%, breaking resistance at $0.85, signaling a bullish trend reversal after months of bearish momentum.
ADA’s 50 EMA at $0.68 acts as dynamic support, with RSI near 70 indicating overbought conditions amid ongoing price gains.
Critical resistance at $0.85-$0.90 could pave the way to $1.00, though minor pullbacks may retest support near $0.68.
Cardano (ADA) has surged to a major price level, gaining momentum after months of bearish trends. Crypto analyst Crypto Yapper shared insights on X, emphasizing the importance of the $0.85 resistance zone.
If ADA maintains its position above this level, a move toward $1 appears achievable. The price’s breakout above a prolonged downtrend resistance line has led to a significant buying activity reinforcing optimism.
Breaking Resistance and Trendline Shifts
Recent movements highlight ADA's breakout from a descending resistance line that defined its bearish ways since mid-2024. The breakout, coupled with increased volume, signals a potential trend reversal.
Source: Crypto Yapper
An ascending trendline, representing higher lows, suggests accumulation before this move. At press time, ADA was trading at $0.8468, an increase of 14.66% in the past 24 hours. However, the $0.85-$0.90 zone presents significant resistance, aligning with earlier rejections from early 2024.
The breakout’s alignment with robust momentum has pushed ADA into bullish territory. Notably, consolidation at $0.55-$0.60 preceded the breakout, establishing this zone as key support. A prior resistance at $0.65 now acts as interim support, reinforcing the bullish case.
Momentum Indicators and Support Levels
Indicators confirm ADA’s strong upward movement. The 50-day EMA at $0.6846 provides dynamic support, with the price consistently holding above this level. Similarly, the 200-day EMA at $0.5073 highlights long-term support but reflects overextension due to the current rally.
Source: BingX
ADA’s RSI near 70 points to overbought conditions, raising caution for potential corrections. Despite this, the bullish momentum remains intact, as sustained higher highs and lows form on the 4-hour timeframe. Immediate support levels include $0.68, aligning with the 50 EMA, and $0.55-$0.60, a previous accumulation zone.
Key Resistance Ahead: Eyes on $1.00
ADA now faces its next challenge at the $0.85-$0.90 resistance zone. A confirmed breakout above this range could pave the way to $1. Sustaining this momentum requires heightened trading volume. However, overbought RSI conditions suggest that minor pullbacks or consolidations might occur, offering potential retests of $0.68 or lower.
