Cardano (ADA) is once again catching the attention of traders as bulls push for a major breakout. After bouncing back from the $0.620 level, ADA has shown strength and is now consolidating just below the critical $0.70 resistance. The big question is: Will Cardano smash through the $0.720 barrier and spark a fresh rally?
Let’s dive deep into the current price action and technical setup for ADA:
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The Recovery Journey So Far
Cardano, like Bitcoin and Ethereum, faced downward pressure recently, dropping from a high near $0.7350. During this decline, ADA broke below key support levels at $0.720 and $0.700, finally forming a bottom near $0.6826.
Since then, a decent recovery has taken place:
ADA is now trading above $0.680.
The price has also regained ground above the 100-hour Simple Moving Average (SMA).
Additionally, ADA has crossed the 50% Fibonacci retracement level of the move from the $0.7338 high to the $0.6826 low.
These are positive technical signals suggesting that bullish momentum is building.
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Key Resistance Levels Ahead
For ADA to ignite a sustained rally, it must clear several important resistance zones:
Initial resistance is near $0.7150.
A major hurdle sits around $0.7180, where a descending trend line offers stiff resistance on the hourly ADA/USD chart.
Beyond that, a breakout above $0.7250 would open the doors to even bigger gains.
The most critical resistance to watch is $0.7500. A clear move above this level could unleash serious bullish momentum.
If ADA succeeds in pushing past these barriers, the price could quickly rally towards $0.7800, and eventually even $0.8000, a major psychological level for the market.
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What Are the Technical Indicators Saying?
Hourly MACD: The MACD for ADA/USD is gaining strength in the bullish zone, indicating increasing buying pressure.
Hourly RSI: The Relative Strength Index (RSI) for ADA is comfortably above 50, signaling positive momentum and room for further upside.
Both indicators are aligned with the potential for another leg higher — provided ADA breaks key resistances.
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Could There Be Another Pullback?
While the outlook is bullish, traders must stay cautious. If Cardano fails to clear the $0.7150–$0.7180 resistance area, a short-term pullback could follow:
Immediate support lies around $0.7000.
The next major support is near $0.6800. This level is crucial — a break below it might trigger a deeper correction toward $0.6300 or even $0.6175.
Buyers are expected to defend these zones aggressively if tested.
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Conclusion: Is Cardano Ready for the Next Big Move?
The technical setup for Cardano looks promising, with strong signs of a bullish continuation if it can overcome the immediate resistance hurdles.
A successful breakout above $0.720 and $0.750 could pave the way for a sharp surge towards $0.7800–$0.8000.
However, failure to break above resistance could result in a healthy correction, offering new buying opportunities for patient traders.
Trading Tip:
Stay disciplined, use stop-losses, and respect key support and resistance levels. Timing the breakout correctly could make a big difference in maximizing gains from Cardano’s next big move.
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Final Thought:
Cardano’s bulls are gearing up — the next few sessions could be decisive. Whether you’re a long-term holder or a short-term trader, this is a moment you won’t want to miss!