Cardano (ADA) Faces Critical Support Retest: Will Bulls Hold Above $0.80?

• Cardano’s $0.75–$0.85 level is a key test, with a potential move upward to $1.10–$1.20 on a hold above here.
• ADA trades in a bearish channel; a breach above $0.85 would represent a reversal in the trend and maintain bull pressure.
• Market indicators are showing low bull power and investors are waiting on MACD and RSI signals to verify the next move.

Cardano (ADA) is in a crucial position where it is trying to hold the support level of $0.75–$0.85. If a hold above is sustained here, the upward move could prevail, but a break could witness a dip lower to $0.55–$0.60.

Key Support and Resistance Levels

Crypto analyst ali_charts pointed out how important the level of $0.67–$0.80 is in acting as a level of support for ADA. The level previously acted as a level of support and resistance and has been a pivotal level in guiding movement. The repeated rejections here in the past justify the level.

Recently, ADA broke above the level and retraced back for a retest, a frequent technical maneuver preceding continuation. If the support is maintained, the next targets on the way up could lie in the area of $1.10 and $1.20. Alternatively, a loss of this support would render the breakout ineffective and drive the price down.

Technical Indicators and Market Structure

ADA remains in a downward channel with lower highs and lower lows. Breaking above the level of $0.80–$0.85 would represent a reversal in the trend and would cause upward pressure.

The MACD is bearish with MACD line (-0.0304) below signal line (-0.0388). The chances of a rebound would get a boost with a bull crossover. The RSI is currently at 43.30 and is in a mild bear state. Above 50 would signal increasing purchasing pressure.

Potential Scenarios for ADA

If ADA is going to breach the falling channel, investors are looking for a bull run, with a daily close above $0.85 confirming a bull thesis. Confirmation signals are a MACD bull crossover and RSI > 50.

Failure to hold on to greater levels would keep ADA in the falling channel and could see a potential fall down to $0.50 and even down to $0.30. The signals to watch out for a bearish resumption are MACD weakness, RSI falling under 40, and a rejection in the area around $0.80.

With ADA in a key position, market players are waiting anxiously to observe what the next major move is. The market value of Cardano (ADA) was $0.7661 at the time of writing, with a 24hr volume of $972,357,347, down -4.01% in the last 24hr and down -3.93% in the last seven days.