ADA Holds $0.73 Support, Could Rally to $1.02 on Breakout

Cardano’s (ADA) price action has drawn attention as traders assess whether recent buying pressure at key support levels could propel the token toward a $1 milestone. The cryptocurrency, which experienced a sharp pullback from its $0.86 breakout level, has since found buyers defending the 20-day simple moving average (SMA) at $0.73. A long tail on the candlestick chart suggests strong accumulation at lower levels, signaling potential for a renewed rally [1].

Technical analysis indicates that ADA’s next major hurdle lies at the $0.94 resistance. If bulls manage to overcome this level, the pair could test $1.02 and later $1.17, according to price projection models [1]. However, caution is warranted. A failure to sustain above $0.94 may confirm the previous breakout as a bear trap, prompting a potential slide to the 50-day SMA at $0.66 [1].

On the 4-hour chart, the moving averages are nearing a bearish crossover, hinting at a possible counterattack by sellers. Immediate resistance at the 20-SMA could cap short-term gains. Should the price stall below this level, a retreat to $0.75 or even $0.70 becomes a risk, prolonging the consolidation phase [1]. Conversely, a decisive move above the 20-SMA would reignite bullish momentum, with $0.90 and then $0.94 as key targets [1].

The current price dynamics reflect the volatile swings typical of the altcoin market. ADA’s recent decline follows a pattern seen in other cryptocurrencies, where sharp rallies are often followed by equally steep corrections. The strength of the rebound from $0.73 suggests that institutional or strategic buyers may be accumulating at discounted levels, positioning for a potential rally [1].

Analysts emphasize that while the $1 threshold remains a focal point for traders, the path to that level is contingent on sustained volume and conviction. A breakdown below critical support could trigger a wave of stop-loss orders, exacerbating downward pressure. Conversely, a successful retest of $0.86 without a breakdown may signal a shift in market sentiment toward renewed optimism [1].

Traders are advised to monitor the 20-day and 50-day SMA levels closely, as these indicators could determine whether ADA’s current correction is a temporary pause or a deeper correction. Given the absence of a clear trend, risk management remains paramount. As with all speculative assets, investors should avoid assuming ADA will reach $1 without further validation from on-chain activity and broader market conditions [1].

Source: [1] [ADA dip buyers defend key support: Will the bounce lead to $1?](https://cointelegraph.com/news/ada-dip-buyers-defend-key-support-will-the-bounce-lead-to-dollar1)