Cardano Traders Watch Key Levels as $0.86 Pullback Offers Opportunity
- Cardano (ADA) trades at $0.86, showing a minor pullback from recent highs near $0.96.
- Short-term bullish momentum persists, supported by EMAs, MACD, and RSI, but caution is needed.
- A break above $0.92 could push ADA toward $1.01 and $1.15, while support lies at $0.77 and $0.70.
Cardano (ADA) is showing signs of a medium-to-long-term bullish trend despite a minor retracement. Currently trading around $0.86, ADA pulled back from recent highs near $0.96.
Weekly candlesticks show average selling pressure with a 5.29% decline on the week. The token continues to be held above the 200-week EMA around the $0.71 level, which has long-term provided support.
Analyst Alex Clay pointed out that ADA is currently in a re-accumulation phase below the Macro Mid-Zone, an important zone for the future development of prices.
Clay described a defined course: accumulation, re-accumulation, and ultimately an explosive movement. Based on his observation, a movement towards $5+ would be achievable if the bullish formation persists.
Also Read: Cardano Eyes $10 as Whales Accumulate Millions of ADA
Bullish Momentum Persists for ADA Despite Minor Pullbacks
Short-term indicators signal bullish momentum for ADA. The 20 EMA ($0.71) is below the current price, while the 100 EMA ($0.71) provides strong long-term support.
The crossover of these moving averages shows that ADA is in an overall uptrend, though recent downswings warn investors entering at these levels.
The Bollinger Bands indicate the price around the top band (~$0.96), which signifies short-term overbought levels and possible consolidation. Increasing bands signal moderate market volatility.
RSI 55 indicates there is bullish momentum without the market being stretched. In the meantime, MACD reconfirms the positive momentum since the MACD line is positioned above the signal line and histogram bars supporting buying pressure.
Cardano Eyes Key Fibonacci Levels
The Fibonacci retracement levels are significant to the near-term ADA forecast. Current support is located at the $0.77 level, which matches the 20/50 EMA zone. The mid-term support is around the $0.70 level, matching the 0.236 Fib level and psychological levels. Long-term support is located around the $0.65 level near the 100 EMA.
Resistance begins at $0.92 (0.5 Fib), the next significant levels being $1.01 (0.618 Fib) and $1.15 (0.786 Fib). A rise above $0.92 may instigate a progression towards these higher levels. A decline below $0.77 might test the levels of $0.70 and $0.65, jeopardizing short-term bullish sentiment.
Overall, Cardano is primed for possible increases should key supports continue to hold, technical indicators pointing towards slow increases, while traders keep an eye on levels of consolidation.
