TLDR
- Cardano (ADA) currently trading at $0.927, caught in a tightening triangle pattern
- Key resistance level at $0.98 could trigger a bullish rally if cleared
- Recent pullback below $0.90 and the 100-hourly simple moving average
- Technical indicators showing bearish momentum with support at $0.840 and $0.8250
Cardano’s price action has entered a critical phase as the cryptocurrency approaches important resistance levels while simultaneously showing signs of a pullback. The popular blockchain platform’s native token ADA is currently trading at $0.927, situated within a narrowing triangle pattern that suggests an imminent price move.
Traders are closely monitoring the $0.98 resistance level, which has repeatedly blocked previous breakout attempts. This price point represents a crucial threshold that, if overcome, could trigger a strong bullish rally for the cryptocurrency.
The most recent price movements show ADA has started a downside correction after reaching the $1.020 zone. This pullback has pushed the price below several important support levels including $0.950 and $0.920.
Bears have successfully pushed ADA below the $0.90 mark. The price has also dipped under the 100-hourly simple moving average, which typically signals bearish sentiment in the short term.
Technical analysis reveals a bearish trend line forming with resistance at $0.940 on the hourly chart. This pattern, combined with ADA trading below key moving averages, suggests further downside pressure may be building.
Technical Indicators Point Downward
The hourly MACD (Moving Average Convergence Divergence) indicator for ADA/USD is gaining momentum in the bearish zone. This technical signal often precedes continued downward movement in price action.
Similarly, the hourly RSI (Relative Strength Index) has dropped below the 50 level, indicating that selling pressure currently outweighs buying interest in the market.
If Cardano fails to break above the $0.940 resistance and the identified trend line, another decline could begin. Immediate support can be found near the $0.840 level, with further support at $0.8250.
Should the price break below $0.8250, which represents the 76.4% Fibonacci retracement level of the recent upward move, it could open the path toward a test of the $0.80 support zone. Beyond that, bulls might emerge near the $0.780 level.
Potential Upside Scenario
Despite the current bearish signals, an upside scenario remains possible. If ADA manages to overcome the immediate resistance at $0.8920 and then breaks through the $0.940 level with a decisive close, it could initiate a strong rally.
In such a case, Cardano’s price might climb toward the psychologically important $1.00 mark. Further gains could extend the movement toward $1.050 in the near term.
For momentum traders, a sustained position above $0.98 could signal an entry point that might lead to accelerated price growth. However, experienced traders are exercising caution, as false breakouts have resulted in significant losses in the past.
The coming trading sessions will be crucial in determining whether ADA will break out from its current pattern or continue its retreat toward lower support levels.
The post Cardano (ADA) Price: Technical Analysis Shows Critical Resistance at $0.98 appeared first on Blockonomi.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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