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.

Source: TradingView

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.

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